EURUSD bulls jostle with 200-SMA hurdle on US Holiday

4 Jul

EURUSD struggles to keep the buyers on board early Thursday, after rising for four consecutive days, as market momentum dwindles during the US holiday. That said, the Euro pair jumped to a three-week high while rising the most in a week after the US statistics drowned Greenback the previous day. However, the cautious mood ahead of Friday’s key US employment report might have challenged the bulls of late, especially amid dicey markets. That said, the RSI’s pullback from the overbought region and receding bullish bias of the MACD joins the 200-SMA to limit the quote’s further upside past 1.0790-85. Even if the quote crosses the 1.0790 hurdle, the 1.0800 threshold and the 61.8% Fibonacci ratio of March-April fall, close to 1.0840, will prod the additional advances. Above all, a four-month-old descending resistance line, close to 1.0895, quickly followed by the 1.0900 round figure, will act as the final defense of the bears.

Meanwhile, the EURUSD pair’s retreat appears elusive beyond the week-start peak of around 1.0776. Following that, the 100-SMA support of 1.0730 will be crucial to watch for the Euro bears. It’s worth noting, however, that an ascending support line from mid-April, close to 1.0680 by the press time, appears a tough nut to crack for the sellers, a break of which will make the pair vulnerable to slump toward the yearly low of 1.0600 marked in April.

Overall, the EURUSD pair is likely to remain on the bull’s radar during a less active day. However, the quote’s upside room appears limited and hence highlights Friday’s key data/events.