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EUR/USD Price Analysis: Sellers fail to penetrate key support, bull RSI divergence on hourly

  • EUR/USD bulls held support at 1.0964 on Thursday. 
  • A bounce to 1.10 may be seen as the hourly chart is reporting bull divergence.

The sell-off in EUR/USD seems to have stalled for now and a stronger bounce to 1.10 could be in the offing. 

On Thursday, the single currency defended support at 1.0964, which is the 76.4% Fibonacci retracement of the rally from 1.0879 to 1.1240. 

So far, the bounce has struggled to gather upside traction above 1.0980. That, however, could change in the next few hours, as the hourly chart is now reporting a bullish divergence of the relative strength index. 

The pair could challenge the psychological resistance of 1.10, which is currently housing the 50-hour moving average. 

The case for a bounce would weaken if the buyers fail to defend the Fibonacci support at 1.0964.

Hourly chart

Trend: Bullish

Technical levels

 

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