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  • EUR/USD is nearing key moving average hurdle on the 4-hour chart.
  • A violation there would expose trendline sloping from June highs.

EUR/USD is currently trading at 1.0986, representing 0.10% gains on the day.

The currency pair looks set to challenge 1.0991 – the 4-hour chart 100-candle moving average (MA). That average has proved a tough nut to crack at least two times in the last four days.

Hence, a 4H close above 1.0991 could invite stronger buying pressure, possibly leading to a test of the resistance at 1.1025 – the trendline connecting June 25 and Aug. 13 highs. A daily close above the trendline would neutralize the bearish setup.

A failure to take out the 4-hour chart 100-candle MA could yield a drop to 1.0920.

4-hour chart

Trend: Corrective rally

Technical levels