• EUR/USD remains sidelined after bouncing off three-week low.
  • 50-SMA, five-week-old rising trend line restricts immediate moves.
  • 200-SMA acts as additional downside filter, oscillators suggest further upside of Euro price.
  • ECB’s Lagarde, US NFP needs to challenge previous pattern to convince Euro buyers.

EUR/USD treads water around 1.0890 as it portrays the market’s cautious mood ahead of the US employment report from June and a speech from European Central Bank (ECB) President Christine Lagarde. In doing so, the Euro pair struggles to defend the previous day’s U-turn from the short-term key support line amid a sluggish Friday morning in Europe.

Also read: EUR/USD: Euro bulls struggle near 1.0900 as US NFP, ECB President Lagarde’s speech loom

Even if the Euro pair remains sidelined, a successful rebound from the five-week-old rising support line and bullish MACD signals, as well as a firmer RSI (14) line, keeps the buyers hopeful.

However, the 50-SMA level surrounding 1.0900 restricts the immediate upside of the EUR/USD pair. Following that, a downward-sloping resistance line from late June, close to 1.0910 at the latest, appears the last defense of the EUR/USD bears.

In a case where the Euro buyers manage to keep the reins past 1.0910, the odds of witnessing a fresh yearly high, currently around 1.1015, can’t be ruled out.

Meanwhile, a convergence of the two-week-old descending support line joins the 200-SMA to highlight 1.0825-30 as the key level to break for the EUR/USD bears to retake control.

EUR/USD: Four-hour chart

Trend: Limited downside expected