- EUR/USD bounces off intraday low while staying inside the immediate trading range.
- Normal RSI conditions, sustained pullback from 200-HMA favor bulls.
- A confirmation of the bullish chart pattern can challenge the monthly top.
EUR/USD takes bids near 1.1780, after recently recovering from 1.1773, during the initial hour of Tokyo open on Thursday. The pair bounced off a three-day-old support line and 200-HMA the previous day.
While looking at the corrective pullback together with the quote’s declines after rising to the early-September high on Monday, an immediate falling wedge bullish chart formation appears on the hourly (1H) play. The move anticipated upside move also gains support from the normal RSI conditions.
As a result, EUR/USD bulls are waiting for the pair’s clear break above the 1.1792 resistance line to challenge the monthly peak near 1.1920. During the rise, 1.1845/50 can offer an intermediate halt.
Alternatively, the stated HMA and support line of the pattern, respectively around 1.1760 and 1.1745, will probe the intraday sellers ahead of directing them towards the 1.1700 round-figure.
During the quote’s additional weakness past-1.1700, the monthly bottom of 1.1602 will lure the EUR/USD bears.
EUR/USD hourly chart
Trend: Recovery expected
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