EUR/USD Price Analysis: Pierces 20-DMA to rise past 1.0000 inside bearish channel

• EUR/USD picks up bids to refresh intraday high, crosses 20-DMA.
• Recently firmer MACD, RSI joins sustained bounce off two-month-old support line to favor bulls.
• Clear break of channel’s upper line needs to confirm further upside, bears have multiple supports to watch during the pullback.

EUR/USD extends the early-week rebound from a two-month-old support line as it marches to 1.0020 during Friday’s Asian session. In doing so, the major currency crosses the 20-DMA while staying inside a downward-sloping trend channel established since early May.

Given the quote’s upside break of the short-term key moving average, as well as firmer RSI and MACD signals, the EUR/USD prices are likely to remain firmer.

However, the late July low near 1.01000 and the stated channel’s upper line, around 1.0170, could challenge the pair’s further advances.

In a case where EUR/USD remains firmer past 1.0170, the odds of witnessing the pair’s run-up towards the previous monthly high near 1.0370 can’t be ruled out.

Alternatively, pullback moves remain elusive beyond the aforementioned two-month-old support line, around 0.9890 by the press time.

Following that, the 61.8% and 78.6% Fibonacci Expansion (FE) levels of the pair’s May-August moves, respectively near 0.9845 and 0.9700, will be in the focus of the EUR/USD sellers ahead of the bearish channel’s lower line, close to 0.9600 at the latest.

EUR/USD: Daily chart

Trend: Limited upside expected