FX.co ★ Technical analysis of EUR/USD for August 10, 2022

The EUR/USD pair's rise from the price of 1.0265 resumes today and accelerates to as high as 1.0369 so far. Immediate concentrate is now on 1.0265 resistance turned support, which is close to 100 day EMA (now at 1.0300). Decisive break there ague that such rally is at least correcting the fall from 1.0369 to set at 1.0300.

Also, it should be noted that U.S. inflation was 8.5% in July, holding close to its highest annual rate in four decades despite easing energy costs.

The EUR/USD pair retreated from around 1.0265, the 61.8% of Fibonacci retracement of the daily climb measured between 1.0265 and 1.0369, so holds above the former critical resistance, now support at 1.0265.

Today, the EUR/USD pair has broken resistance at the level of 1.0265 which acts as support now. Thus, the pair has already formed minor support at 1.0265.The strong support is seen at the level of 1.0265 because it represents the weekly support 1.

Technical readings in the daily chart favor a bullish continuation, as indicators maintain their firmly bullish slopes within positive levels, while the 100 MA heads firmly higher below the current level.

Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.0265 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: GBP is in an uptrend and USD is in a downtrend.

Buy above the minor support of 1.0265 (this price is coinciding with the ratio of 61.8% Fibonacci) with the first target at 1.0400, and continue towards 1.0440 (the weekly resistance 2).

On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.0265; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.0201 to test it again. Furthermore, the level of 1.0097 will form a double bottom.

On the downside, break of 1.0265 minor support will suggest that such rebound has completed and bring retest of 1.0097 low instead.