EUR/USD Price Analysis: Euro bulls approach 1.0860 hurdle ahead of ECB Interest Rate Decision

• EUR/USD clings to mild gains at the highest level in a month, up for the fourth consecutive day.
• Upbeat RSI, MACD joins 100-DMA breakout to keep Euro buyers hopeful.
• 50-DMA lures EUR/USD bulls amid hawkish ECB expectations after Fed showdown.
• Sellers need acceptance below 1.0790 support confluence to retake control.

EUR/USD stays on the front foot for the fourth consecutive day, mildly bid near 1.0840 by the press time, as it braces for the key European Central Bank (ECB) monetary policy meeting on early Thursday.

That said, hawkish expectations from the ECB join the Euro pair’s upside break of the 100-DMA to keep the buyers hopeful. Also adding strength to the upside bias are the bullish MACD signals and the firmer RSI (14) line, not overbought.

Also read: EUR/USD stays bullish above 1.0800 on Fed’s hawkish halt, ECB eyed

Hence, EUR/USD bulls are all set to prod 1.0860 resistance comprising 38.2% Fibonacci retracement of its January-April upside, as well as the April 10 swing low.

However, the 50-DMA hurdle of around 1.0875 and multiple levels marked since late January around 1.0930 can challenge the EUR/USD bulls afterward.

In a case where the EUR/USD pair remains firmer past 1.0930, the 1.1000 round figure and February’s peak of 1.1033 will be in the spotlight.

On the contrary, a daily closing below the 100-DMA resistance-turned-support, around 1.0800 by the press time, isn’t an open invitation to the Euro bears as a convergence of a one-week-old rising trend line and 50% Fibonacci retracement challenges the downside near 1.0790.

Should the EUR/USD bears dominate past 1.0790, the odds of witnessing the Euro pair’s further fall towards the 61.8% Fibonacci retracement and an upward-sloping support line from January, close to 1.0715 and 1.0650 in that order, can’t be ruled out.

EUR/USD: Daily chart

Trend: Limited upside expected