The EUR/USD currency pair is going through a period of correction. This comes after striking a high point of 1.0489 during Thursday’s trade. The pair showed a strong responsive purchasing action after it got to 1.0382 low.
Impressive Market Impressions
A responsive purchasing action shows the beginning of significant longs. It is the action from market players after considering the asset value.
Euro bulls have defended the currency’s critical support line of 1.0382. It was comfortably recorded on the 16th of June. It has equally now resulted in a stronger bullish reversal in the opposite direction.
EUR/USD price chart. Source TradingView
The uptick trend in place from the 17th of June lands a low of 1.0444. It will act as a necessary hurdle for the opposite direction.
The currency pair has now crossed the 20 and 50-period Exponential Moving Averages. The figures for both positions are 1.0465 and 1.0473 respectively. It should be noted that the pair’s price is being auctioned above the near-term EMAs.
Whereas, the 20-period exponential moving average is trading below that of the 50-period. This, therefore, shows a strong purchasing action in the EUR/USD currency pair.
While at that, the relative strength index is trying to cross the 60.00 benchmarks. It will, thus, be able to verify the other leg of the rally. An event of the same magnitude will expose the pair to more gains.
A stronger shift in the range of the relative strength index shows bullishness. It reveals comfortably that the asset is no longer in a bearish market position.
A clear movement over the low of the 23rd of June will push the pair. It will take the pair from 1.0483 to the high point of Wednesday at 1.0535. The next point to climb will then be the high point of Tuesday at 1.0606.
The Dollar Dynamics
On the other side, the US Dollar bulls might be able to strengthen their position. This will be possible only if the pair falls under Thursday’s low point at 1.0433.
Such development will pull the pair towards the low point of the 14th of June. The pair landed at 1.0397 on the said date. A further drop under that point will open the pair to more slides. It could then get to the low point of June 15 which was 1.0359.
The EUR/USD pair showed some resistance to external factors that have been plaguing it. The Ukraine war and the COVID crisis top the list of poor economic catalysts.