EUR/USD Price Analysis: A range expansion looks likely above 1.0600

• A Darvas Box formation is indicating a volatility contraction in the asset.
• The RSI (14) is attempting to shift into the bullish range of 60.00-80.00.
• The shared currency bulls have defended the 20-EMA confidently.

The EUR/USD pair is displaying a sideways move after a minor correction from the round-level resistance of 1.0600. On a broader note, the asset is auctioning in a range of 1.0444-1.0601 from the last week after witnessing a responsive buying action below 1.0400.

The asset is forming a Darvas Box on the hourly scale, which signals for a volatility contraction that is followed by an expansion in the same. A responsive buying action from July 16 low at 1.0384 is favoring an upside break of the volatility contraction.

The asset is comfortably holding itself above the 200-period Exponential Moving Average (EMA) at 1.0534, which underpins the shared currency bulls against the greenback. Also, the eurozone bulls have defended the 20-period EMA at 1.0558, which showcases their strength.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to shift into a bullish range of 60.00-80.00, which will strengthen the shared currency bulls further.

Should the asset decisively oversteps Wednesday’s high at 1.0606, a Darvas Box breakout will activate the bulls, which will drive the asset towards July 7 low at 1.0652. A breach of the latter will direct the eurozone bulls towards July 6 high at 1.0752.

Alternatively, the greenback bulls could regain their strength if the asset drops below Friday’s low at 1.0444. This will drag the asset towards June 14 low at 1.0397, followed by June 15 low at 1.0359.

EUR/USD hourly chart