EUR/USD Price Analysis: RSI divergence probes bulls around key hurdles below 1.1800
- EUR/USD seesaws around one-week high after a four-day uptrend.
- RSI run-up fails to refresh recent highs, forming bearish divergence.
- 20-DMA, downward sloping trend line from June guard immediate upside.
EUR/USD sits idle near the weekly top of 1.1774 amid sluggish early Asian session on Thursday. The currency major pair rose during the last four days after refreshing the yearly bottom.
Although the latest run-up probes 20-DMA for the first time in over a week, hidden bearish divergence relating to the EUR/USD prices moves and RSI conditions keep sellers hopeful below the 1.1800 threshold. The stated bearish divergence could be perceived when the prices fail to follow RSI to the north.
Ahead of the 1.1800 round figure resistance, the 20-DMA level of 1.1775 and a descending trend line from June 01, near 1.1785, will be tough challenges for the bulls. Also acting as the key hurdle to the north is the mid-August peak surrounding 1.1805.
Should the EUR/USD prices rally beyond 1.1805, the monthly peak surrounding 1.1900 will be on the bull’s radar.
Alternatively, a two-week-old horizontal area surrounding 1.1700 will be a strong support to watch during the quote’s pullback moves.
However, a break of which won’t hesitate to challenge the monthly bottom, also the yearly low, near 1.1660–65.
EUR/USD: Daily chart
Trend: Pullback expected