EURUSD Price Analysis: Bulls stay hopeful above 1.0300 on RSI divergence inside nearby triangle
- EURUSD struggles for clear directions, stays inside three-day-old symmetrical triangle.
- Bullish RSI divergence, sustained trading beyond two-week-old ascending trend line challenges sellers.
- Late June high probes upside moves before the highs marked in late June.
EURUSD pares intraday gains around 1.0370 heading into Friday’s European session. In doing so, the major currency pair retreats from a resistance line of the immediate symmetrical triangle while bracing for the fifth consecutive weekly gain.
However, a hidden bullish divergence between the EURUSD price and the RSI (14) joins a fortnight-old ascending trend line to keep buyers hopeful.
That said, the quote printed higher lows on the chart even as the RSI marked lower lows, which in turn suggests that the EURUSD bears are running out of steam.
Even so, an upside clearance of the stated triangle’s top line, near 1.0385, appears necessary for the bulls to keep the reins.
Following that, the EURUSD pair’s run-up could aim for the monthly high and tops marked during late June, respectively around 1.0480 and 1.0615.
On the flip side, the triangle’s support line restricts the immediate downside of the Euro pair around 1.0315, quickly followed by the 1.0300 round figure.
Also acting as a downside filter is an upward-sloping support line from November 04, close to the 1.0200 level.
In a case where EURUSD remains bearish past 1.0200, the odds of witnessing a slump towards the November 08 swing high near 1.0095 can’t be ruled out.
EURUSD: Four-hour chart
Trend: Further grinding towards the north expected