EUR/USD price Analysis: Refreshes five-month high above 1.0550 on solid risk-on profile

• EUR/USD has refreshed a five-month high above 1.0550 on positive market sentiment.
• A breakout of the neutral channel has exposed the pair for a fresh upside.
• The RSI (14) is aiming to shift into the bullish range of 60.00-80.00 for sheer bullish momentum.

The EUR/USD pair has refreshed its five-month high at 1.0549 in the Asian session. The major currency pair has witnessed a juggernaut rally after a responsive buying action below 1.0440 on Friday. The US Dollar has witnessed immense pressure amid the risk appetite theme and is an inch far from testing the previous week’s low around 104.38.

Meanwhile, S&P500 is displaying a subdued performance ahead of US Services PMI data. The 10-year US Treasury yields have recovered to near 3.53% portraying a cautious mood despite improvement in risk-sensitive assets.

The EUR/USD pair has shifted its business above the psychological resistance of 1.0500 after a breakout of the neutral channel formation on an hourly scale. The breakout of the aforementioned chart pattern indicates more upside ahead.

The 20-and 50-period Exponential Moving Averages (EMAs) at 1.0526 and 1.0494 respectively are aiming higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to shift into the bullish range of 60.00-80.00, which indicates more upside ahead.

Going forward, a break above a fresh five-month high at 1.0552 will drive the major currency pair toward the round-level resistance at 1.0600, followed by May 5 high at 1.0642.

On the flip side, a drop below Friday’s low at 1.0429 will drag the major currency pair toward December 1 low at 1.0393. A slippage below the latter will drag the asset toward November 30 low at 1.0290.

EUR/USD hourly chart