EUR/USD Price Analysis: Bounces off 1.0840-45 support confluence

• EUR/USD picks up bids to renew intraday high as it snaps two-day downtrend.
• Two-week-old ascending support line, 100-SMA restricts short-term downside.
• Euro buyers need validation from weekly descending trend line, horizontal resistance area established from late March.
• Bearish MACD signals, multiple hurdles towards the north challenge EUR/USD bulls.

EUR/USD renews intraday high near 1.0880 as bulls struggle to retake control after a two-day downtrend during early Tuesday. In doing so, the Euro pair rebounds from a convergence of the 100-SMA and a two-week-long ascending support line.

The major currency pair’s recovery moves, however, remain elusive unless the quote remains below the 13-day-old horizontal resistance area surrounding 1.0930.

That said, a one-week-old descending trend line, around 1.0900 by the press time, guards the EUR/USD pair’s immediate upside.

In a case where the EUR/USD remains firmer past 1.0930, the monthly high of around 1.0975 may act as the last defense of the pair sellers ahead of directing the price towards February’s peak of 1.1033.

Alternatively, a downside break of 1.0840-45 support confluence won’t hesitate to drag the quote toward the monthly low of 1.0788.

However, the 50% and 61.8% Fibonacci retracement levels of the pair’s March-April upside, respectively near 1.0745 and 1.0690, can challenge the EUR/USD bears afterward.

To sum up, EUR/USD bulls need to cross 1.0930 to regain the market’s confidence. Otherwise, the quote remains on the bear’s radar even if 1.0845-40 restricts the short-term downside.

EUR/USD: Four-hour chart

Trend: Limited recovery expected