- EUR/USD remains indecisive after retreating from five-week high.
- Monthly horizontal line challenges pullback from 50% Fibonacci retracement of June-July downside.
- Buyers have a comparatively smoother road to journey than the one signaled for bear’s return.
EUR/USD treads water around 1.0300, after refreshing the monthly high, during Thursday’s initial Tokyo session. In doing so, the major currency pair struggles to extend the previous pullback from the 50% Fibonacci retracement of a downturn between June and July.
That said, bullish MACD signals and the quote’s sustained trading beyond the previous horizontal resistance line from early July, around 1.0280, keep EUR/USD buyers hopeful.
Even if the quote drops below 1.0280, the 200-SMA and a downward sloping trend line from early June, respectively near 1.0230 and 1.0205, could challenge the pair sellers.
It’s worth noting that a four-week-long support line of around 1.0180 acts as the last defense for the EUR/USD buyers.
Meanwhile, the pair’s fresh run-up could aim for the aforementioned key Fibonacci retracement level near 1.0365.
Following that, a run-up towards the 61.8% Fibonacci retracement and the late June swing high, surrounding 1.0460 and 1.0490 in that order, could lure the EUR/USD bulls.
Overall, EUR/USD is likely to remain on the bull’s radar until staying beyond 1.0180.
EUR/USD: Four-hour chart
Trend: Further upside expected