EURUSD Price Analysis: Retreats from three-month high but stays beyond 1.0070 support confluence

• EURUSD pares the biggest daily gains in a week around multi-day high.
• RSI challenges buyers but 100-day EMA, previous resistance line from September restricts downside.
• Daily closing beyond September’s peak becomes necessary for further upside.

EURUSD bulls take a breather around the highest levels since early August, retreating to 1.0188 during Friday’s Asian session, as it pares the biggest daily jump in a week.

The nearly overbought RSI (14) and a failure to provide a daily closing beyond September’s high seemed to have triggered the major currency pair’s latest pullback amid a sluggish Asian session.

Even so, the quote remains well above the 1.0070 support confluence including the 100-day EMA and the resistance-turned-support line from early September.

In addition to the 1.0070 support, the 1.0000 psychological manget and a downward-sloping trend line from late June, currently around 0.9850, also act as additional challenges for the EURUSD bears.

Alternatively, a clear break of the September month high near 1.0200 becomes necessary for the pair’s fresh upside rally.

Following that, the 61.8% Fibonacci retracement of May-September downside, at 1.0310, could lure the EURUSD buyers.

However, a six-month-old horizontal resistance area around 1.0355-70 appears a tough nut to crack for the bulls afterward.

EURUSD: Daily chart

Trend: Pullback expected