Home Forex A triple bottom above 0.9800 offers a counter bet, 0.9900 a key obstacle

A triple bottom above 0.9800 offers a counter bet, 0.9900 a key obstacle

by SuperiorInvest
  • A triple bottom formation is showing signs of losing downward momentum.
  • Eurozone bulls are trying to break the 20-EMA at 0.9843.
  • Extending the recovery in the asset will send it towards parity.

EUR/USD pair is trading in a balanced market profile after responsive buying action from 0.9812 in the Asian session. More broadly, the asset remained in the grip of the bears, but is now showing signs of exhaustion on the downside. The asset caused a breakout of the upward consolidation formed in the narrow range of 0.9829-0.9841 in the Tokyo session.

On an hourly basis, bulls are showing some strength in the shared currency as the asset has built a cushion above 0.9800. The 0.9800s testing rampage formed a triple bottom pattern on the chart, indicating an upside reversal after a longer-term downtrend.

The asset is trying to break above the 20-time exponential moving average (EMA) at 0.9843, which will strengthen bulls in the Eurozone. While the 50-EMA at 0.9872 is still far from the range to be conquered.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating between 40.00-60.00, indicating that the upward momentum has not yet been triggered.

An upside break from Thursday’s high at 0.9907 will send the asset towards Tuesday’s low at 0.9955, followed by parity.

On the downside, dollar bulls could tighten further if the asset falls below Thursday’s low of 0.9807, leading to the October 14, 2002 low of 0.9695. A drop below the latter will be a fresh two-decade low of 0.9600.

EUR/USD hourly chart

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