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EUR/USD pulls back from intraday highs as bulls take a breather ahead of key US CPI.
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The 50-HMA, the two-week-old horizontal support, limits short-term downside.
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Firmer RSI (14) signals limited acceptance to bearish bias.
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, EUR/USD sellers approach the 50-HMA support around 1.0745. However, the quote’s weakness before 1.0745 is limited as multiple levels identified since December 30 limit the quote’s downside near 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
