EUR/USD Price Analysis: RSI moves favor corrective pullback above 1.0400

• EUR/USD pares recent losses around fortnight low, renews daily high.
• Higher low on prices, RSI hints at gradual building of bullish bias.
• 10-DMA, monthly resistance line limits immediate upside, ascending trend line from mid-May appears crucial support.

EUR/USD picks up bids to refresh intraday high near 1.0435 during Monday’s initial Asian session, after falling back to the bear’s radar during the last week.

Even if the major currency pair remains around a two-week low, flashed on Friday, its moves from May 13 appear not in favor of the sellers. That said, the higher low in the EUR/USD prices has gained support from the higher low in the RSI (14), which in turn suggests a gradual reduction in a bearish bias.

However, the 10-DMA hurdle surrounding 1.0500 restricts the quote’s immediate upside ahead of a downward sloping resistance line from early June, close to 1.0540 by the press time.

Should the EUR/USD pair manage to cross the 1.0540 hurdle, the odds of its run-up to late June’s swing high near 1.0615 and then to the previous monthly peak of 1.0774 can’t be ruled out.

On the contrary, the aforementioned support line from May, near 1.0365 appears the key level for the EUR/USD bears to watch before retaking the controls.

Following that, the yearly low marked in May at around 1.0348 and January 2017 bottom of 1.0340 could act as validation points for the further south-run.

EUR/USD: Daily chart

Trend: Further recovery expected