EUR/USD Price Analysis: Bulls gear up for a mark-up phase, 1.0097-1.0114 range a critical zone

• A prolonged accumulation will be followed by a markup phase ahead.
• The shared currency bulls await a break above the 1.0097-1.0114 supply zone for a fresh rally.
• Advancing 20-and 50-EMAs add to the upside filters.

The EUR/USD pair is displaying a lackluster performance in the Asian session as investors have shifted to the sidelines ahead of the US inflation data. The asset is oscillating in a narrow range of 1.0061-1.0104 and is expected to continue its rangebound performance. The major has remained in the grip of bulls for the past week after printing a multi-year low below 0.9900.

On an hourly scale, the asset is hovering around the supply zone, placed in a 1.0097-1.0114 range. A prolonged accumulation in a 0.9864-1.0097 range indicates a transfer of assets from retail participants to institutional investors. This also serves as a bullish reversal and results in sheer upside ahead. A breakout of the accumulation phase results in a markup phase ahead.

The 20-and 50-period Exponential Moving Averages (EMAs) at 1.0066 and 1.0040 respectively are advancing higher, which adds to the upside filters.

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

A decisive break above the 1.0097-1.0114 range supply zone will drive the asset towards August 17 high at 1.0203, followed by July 21 high at 1.0278.

Alternatively, the shared currency bulls would lose their grip if the asset drops below August 26 low at 0.9947. If it happens then the asset could decline further towards Monday’s low at 0.9878 and round-level support at 0.9800.

EUR/USD hourly chart