- EUR/USD edges higher around three-week top inside bullish chart pattern.
- Firmer RSI, sustained trading above 200-SMA also favors buyers.
- 14-day-old horizontal support adds to the downside filters.
EUR/USD treads water around 1.1800 despite refreshing multi-day high at the week’s start. In doing so, the major currency pair remains inside an ascending trend channel formation established since August 20.
In addition to the bullish chart formation, firmer RSI conditions, not overbought, as well as the quote’s ability to remain beyond 200-SMA, suggests further upside of the EUR/USD prices.
That said, the stated channel’s resistance line near 1.1825 offers an immediate upside hurdle to the pair.
Should the EUR/USD bulls reject the channel formation by crossing 1.1825, the August 05 swing high near 1.1855 may offer an intermediate halt during the rally targeting the July 30 peak of 1.1908.
Alternatively, pullback moves will be challenged by 200-SMA and the stated channel’s support line, respectively around 1.1780 and 1.1755.
However, any further weakness past 1.1755 won’t hesitate to revisit the 1.1705–1700 support area established since August 11 before challenging the yearly low of 1.1664.
EUR/USD: Four-hour chart
Trend: Further upside expected
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