EUR/USD Price Analysis: Bulls have a bumpy road ahead, 0.9980 appears immediate hurdle

• EUR/USD picks up bids to refresh intraday high, extends bounce off seven-week-old support line.
• RSI, MACD also tease buyers but 10-DMA probes recovery moves.
• Monthly resistance line, 50-DMA adds to the upside filters.

EUR/USD holds onto the previous day’s corrective bounce off the short-term key support line around 0.9960 during Tuesday’s Asian session.

In doing so, the major currency pair also takes clues from the impending bull cross on the MACD, as well as the rebound, to underpin the recovery moves towards the 10-DMA hurdle surrounding 0.9980.

Following that, the 1.0000 parity level and a downward sloping resistance line from August 17, close to 1.0030, could test the recovery moves. It’s worth noting that the 50-DMA level surrounding 1.0150 appears the last defense of the EUR/USD bears before giving control to the buyers.

Alternatively, a descending support line from mid-July, near 0.9880, restricts the immediate downside of the pair.

Following that, the 61.8% and 78.6% Fibonacci Expansion (FE) of the EUR/USD pair’s moves between late May and early August, respectively around 0.9845 and 0.9700, could challenge the pair’s downside.

It’s worth noting that the RSI (14) is nearly oversold and hence further downside has limited room.

EUR/USD: Daily chart

Trend: Limited recovery expected