EUR/USD Price Analysis: Euro bulls flex muscles within weekly Pennant around 1.0700

• EUR/USD remains sidelined within trend continuation chart pattern.
• Sustained trading beyond five-month-old ascending support line lures Euro buyers.
• Looming bull cross on MACD, nearly oversold RSI signal EUR/USD’s further upside.
• Pennant’s top line, 100-DMA challenge Euro bulls before giving control.

EUR/USD steadies within a one-week-old Pennant formation, near 1.0700 by the press time of early Thursday in Asia, as bulls and bears jostle amid fears of economic slowdown, higher rates and softer Eurozone data.

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That said, the Euro pair’s rebound from a five-month-old ascending support line joins the recently downbeat RSI (14) line, as well as an impending bull cross on the MACD, to keep the EUR/USD buyers hopeful.

However, a clear upside break of the stated Pennant’s top line, currently around 1.0730, becomes necessary for the EUR/USD pair buyers to retake control.

Even so, the 100-DMA hurdle of around 1.0810 can check the upside momentum ahead of directing the Euro price towards the mid-May swing high of near 1.0910.

On a different page, the stated Pennant’s bottom line, close to 1.0670 by the press time, restricts the short-term downside of the EUR/USD, a break of which will drag the Euro pair to an upward-sloping support line from early January, near 1.0640.

It’s worth noting that the previous monthly low of around 1.0635 acts as an extra check for the EUR/USD bears, past 1.0640, before directing them to the lows marked in March and January, respectively near 1.0515 and 1.0480 in that order.

EUR/USD: Daily chart

Trend: Recovery expected