EUR/USD Price Analysis: Euro bulls take a breather at six-week high past 1.0970 support

• EUR/USD seesaws around the highest levels in 1.5 months after snapping three-day downtrend.
• Clear upside break of 11-week-old horizontal resistance zone, bullish MACD signals direct Euro bulls toward February’s top.
• EUR/USD bears need validation from 50-DMA, Fed Chair Powell to retake control.

EUR/USD stays on the front foot at the highest levels since early May, making rounds to 1.0990 during early Thursday morning in Asia. In doing so, the EUR/USD pair manages to cheer the upside break of a nearly three-month-old horizontal resistance zone.

That said, a sustained break of the horizontal region comprising multiple levels marked since April 04, around 1.0970-55, keeps the EUR/USD buyers hopeful. Also keeping the Euro buyers hopeful are the bullish MACD signals.

However, the RSI (14) line is nearly overbought and hence the 1.1000 psychological magnet and February month’s high of near 1.1030 will challenge the EUR/USD buyers.

Following that, the yearly high marked in April around 1.1100 and an upward-sloping resistance line from February, near 1.1125 at the latest, will be in the spotlight.

Alternatively, a downside break of the 1.0970-55 support area can quickly drag the EUR/USD price toward the 50-DMA support of 1.0880, which in turn acts as the short-term final defense of the Euro buyers.

Overall, EUR/USD buyers are likely to keep the reins unless witnessing a clear downside break of the 1.0970-55 zone.

EUR/USD: Daily chart

Trend: Further upside expected