EUR/USD Price Analysis: Flirts with a nearly two-week-old ascending trend-line, around 1.0600

• EUR/USD extends its two-way price move for the second successive day on Tuesday.
• The setup supports prospects for the emergence of some dip-buying at lower levels.
• A break below a two-month-old ascending channel is needed to negate the positive bias.

The EUR/USD pair seesaws between tepid gains/minor losses through the early North American session and is currently placed in neutral territory, around the 1.0600 mark.

From a technical perspective, the EUR/USD pair, so far, has managed to defend support marked by an upward-sloping trend-line extending from December 7. A convincing break below might prompt aggressive technical selling and accelerate the fall towards the 100-period SMA on the 4-hour chart, currently around the 1.0520 area.

Meanwhile, oscillators on hourly charts have just started drifting in the negative territory and favour bearish traders amid looming recession risks. Technical indicators on the daily chart, however, are holding comfortably in the bullish zone and support prospects for the emergence of some dip-buying around the EUR/USD pair.

That said, some follow-through selling will make the EUR/USD pair vulnerable to weaken below the 1.0500 psychological mark and test the next relevant support near the 1.0460-1.0455 area. The latter coincides with the lower boundary of a nearly two-month-old ascending channel and should act as a pivotal point for short-term traders.

On the flip side, the 1.0650-1.0660 region now seems to have emerged as an immediate hurdle. This is closely followed by the 1.0680 horizontal barrier ahead of the 1.0700 round figure. Any subsequent move-up could meet with some supply near the trend-channel resistance, currently around the 1.0725 area, just ahead of the post-ECB swing high.

A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent strong recovery move from over a two-decade low touched in September. The EUR/USD pair might then aim to reclaim the 1.0800 round-figure mark for the first time since April 2022.

EUR/USD 4-hour chart

Key levels to watch