VOT Research Desk
Prior to Friday’s European session, intraday gains for the EURUSD are reduced around 1.0370.
As a result, the major currency pair retreats from the immediate symmetrical triangle’s resistance line and braces for its fifth straight weekly rise.
But to give buyers hope, a concealed bullish divergence between the EURUSD price and the RSI (14) joins a two-week-old ascending trend line.
Nevertheless, the quotation indicated higher lows on the chart while the RSI indicated lower lows, indicating that the EURUSD bears are losing momentum.
However, it appears that in order for the bulls to maintain control, an upward break of the indicated triangle’s top line, near 1.0385, is required. The run-up for the EURUSD pair might then aim for the monthly high and tops recorded in late June.
The triangle’s support line, on the other hand, limits the Euro pair’s immediate fall to about 1.0315, which is then shortly followed by the round number 1.0300.
An upward-sloping support line from November 04, at the 1.0200 level, also functions as a downside filter.One cannot rule out the possibility of a decline toward the swing high near 1.0095 from November 2008 in the event that the EURUSD continues bearish past 1.0200.
