EURUSD Price Analysis: Inventory adjustment around 1.0100 signals more upside ahead

• An inventory adjustment process around the critical resistance of 1.0100 bolsters the odds of a breakout.
• Market mood has turned quiet ahead of US Inflation/Mid-term elections outcome.
• Advancing 20-and 50-EMAs add to the upside filters.

The EURUSD pair is displaying back-and-forth moves in a narrow range below the critical hurdle of 1.0100. The asset has turned sideways as investors are awaiting the release of the US inflation data for informed decisions ahead.

Quiet market mood has also sidelined the US dollar index (DXY). The DXY is oscillating in a 109.47-109.79 range and is expected to continue its lackluster performance till the outcome of the US mid-term elections and inflation numbers.

On an hourly scale, the asset has shifted into a rangebound structure, which indicates an inventory adjustment phase for a vertical move. Odds are favoring a rally after an inventory adjustment break as the prior trend has remained north-side.

Advancing 20-and 50-Exponential Moving Averages (EMAs) at 1.0056 and 1.0014 respectively add to the upside filters.

Meanwhile, a corrective move in the asset has dragged the Relative Strength Index (RSI) (14) near 60.00, however, the upside bias is still intact.

Breakouts are not a cakewalk, therefore mild corrections are considered healthy after testing the potential resistance. An optimal buying opportunity should be around the 20-EMA at 1.0056, which would drive the asset towards the round-level resistance at 1.0100, followed by September 23 high around 1.0200.

On the flip side, the Euro bulls could lose momentum if the asset drops below Tuesday’s low at 0.9971. An occurrence of the same will unleash the Greenback bulls for a downside move towards Monday’s low at 0.9900 and November 1 low at 0.9853.

EURUSD hourly chart