EUR/USD Price Analysis: Impending Bear Cross, dilemma about ECB, Fed test Euro bulls below 1.1025 hurdle

• EUR/USD bulls struggle to keep the reins, posting minor gains during three-day winning streak.
• Looming bear cross, multiple failures to cross one-month-old horizontal resistance challenge Euro buyers.
• Bears need validation from previous resistance line, ascending support line from early July and US inflation clues.
• US data, ECB report underpin market’s confusion about the end of hawkish eycle.

EUR/USD clings to mild gains around 1.0990 as it struggles to defend the three-day uptrend during early Friday morning in Europe, especially amid the mixed bias about the European Central Bank (ECB) and the Federal Reserve (Fed). Also challenging the Euro pair is the presence of more clues of the US inflation conditions on the economic calendar.

Also read: EUR/USD steadies below 1.1000 as Fed officials welcome US inflation data, ECB signals uncertain times

Technically, a clear upside break of the previous key resistance line stretched from July 18, now immediate support around 1.0960, restricts the immediate downside of the EUR/USD pair.

Adding strength to the bullish bias is the pair’s successful trading above a one-month-old rising support line surrounding 1.0940, as well as the upward-sloping RSI (14) line, not overbought.

It’s worth noting that the monthly bottom of around 1.0910 and the 1.0900 round figure also challenge the EUR/USD bears.

On the flip side, the 100-SMA pierces the 200-SMA from above and teases a Bear Cross while challenging the Euro buyers below the 1.1025 SMA confluence.

Even if the EUR/USD pair crosses the 1.1025 hurdle, a one-month-old horizontal resistance area near 1.1040 appears a tough nut to crack for the bulls.

EUR/USD: Four-hour chart

Trend: Limited recovery expected