EUR/USD Price Analysis: Upside need validation above 1.1600

• EUR/USD remains muted in the early Asian session on Thursday.
• The pair consolidates after posting a 70-pips upside movement in the previous day.
• Price trades below 1.1600 since October 6, MACD trades in the oversold zone.

EUR/USD edges higher in a quiet session on Thursday. The pair rose near 1.1600 in the US session following a broad-based USD selling. At the time of writing, EUR/USD is trading at 1.1595, up 0.02% for the day.

EUR/USD daily chart

On the daily chart, the EUR/USD pair has started the October series on a lower note while testing the yearly lows around 1.1524 this Tuesday. The spot already trades below the 21-day Simple Moving Average (SMA) at 1.1638, indicating a downside risk. Nevertheless, the previous session’s single-day gain defies the four-session downward journey of the pair. 

Having said that, if the price sustains intraday high, it could continue to register more gains. In doing so, the first upside target would be the 1.1630 horizontal resistance level followed by the high of September 29 at 1.1690. The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone, any uptick could mean the 1.1750 for the EUR/USD bulls.

Alternatively, if the price reverses direction, the EUR/USD bears would once again dominate the trend with their eyes on October, 1 low at 1.1530. Next, the market participants would test the 1.1550 horizontal support level. A break below the mentioned level will open the door below the yearly lows of 1.1524.

EUR/USD additional levels