EUR/USD Price Analysis: Pullback remains elusive beyond 1.0710 support

EUR/USD retreats from intraday high as bulls take a breather ahead of the key US CPI.
50-HMA, two-week-old horizontal support restrict short-term downside.
Firmer RSI (14) signals limited acceptance to bearish bias.

Anil Panchal FXStreet

EUR/USD depicts the market’s cautious mood heading into Thursday’s European session as it eases from an intraday high to 1.0760 by the press time. Even so, the major currency pair remains firmer for the fifth consecutive day as traders await the US Consumer Price Index (CPI) data for December.

That said, the quote’s latest pullback could be linked to its inability in crossing the fortnight-long ascending resistance line, around 1.0780 by the press time.

The lower highs on the RSI (14) also favor the recent pullback in the EUR/USD. However, the momentum indicators remain well above the 50 mark and suggest limited favor to the heavy downside.

Against this backdrop, the EUR/USD sellers approach the 50-HMA support surrounding 1.0745. Though, the quote’s weakness past 1.0745 remains limited as multiple levels marked since December 30 restrict the quote’s further downside around 1.0710.

In a case where EUR/USD breaks the 1.0710 support, a quick drop toward the tops marked late last week, near 1.0635 appears more likely.

Meanwhile, recovery moves need to cross the aforementioned ascending resistance line, close to 1.0780, to restore the bullish bias. Even so, the high marked during May 2022 and the March 2022 low, respectively near 1.0785 and 1.0805, could challenge the EUR/USD buyers.

Following that, a run-up towards the 1.1000 psychological magnet can’t be ruled out.

EUR/USD: Hourly chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.0761
Today Daily Change	0.0007
Today Daily Change %	0.07%
Today daily open	1.0754

Trends
Daily SMA20	1.0635
Daily SMA50	1.0463
Daily SMA100	1.0173
Daily SMA200	1.0311

Levels
Previous Daily High	1.0776
Previous Daily Low	1.0726
Previous Weekly High	1.071
Previous Weekly Low	1.0483
Previous Monthly High	1.0736
Previous Monthly Low	1.0393
Daily Fibonacci 38.2%	1.0757
Daily Fibonacci 61.8%	1.0745
Daily Pivot Point S1	1.0728
Daily Pivot Point S2	1.0701
Daily Pivot Point S3	1.0677
Daily Pivot Point R1	1.0778
Daily Pivot Point R2	1.0803
Daily Pivot Point R3	1.0829

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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