• EURUSD prints a bullish chart formation near a three-month high.
• Convergence of three-day-old support, flag’s bottom challenge bears of late.
• Steady RSI suggests further grinding but buyers stay hopeful.

EURUSD bulls take a breather at a three-month high, after posting the biggest weekly gains since March 2020. That said, the major currency pair seesaws inside an immediate bull flag while snapping a two-day uptrend near 1.0300 heading into Monday’s European session.

Not only the adjacent bull flag but the steady RSI (14) also teases EURUSD buyers of late.

The recovery moves, however, need to cross the 1.0335 hurdle to confirm the bullish formation suggesting a run-up towards May’s top near 1.0790.

It’s worth noting that the late June top around 1.0615 could act as a buffer during the EURUSD rush towards the theoretical target.

Alternatively, an upward-sloping trend line from Thursday joins the lower line of the flag, close to 1.0290, restricts immediate EURUSD declines.

Should the quote breaks the 1.0290 support confluence, the bullish chart pattern gets defied, which in turn could direct the bears towards the 100 and 200 SMAs, respectively near 1.0200 and 1.0120 in that order.

During the EURUSD weakness past 1.0120, the previous monthly peak near 1.0090 could act as the last defense of the pair buyers.

Overall, the pair buyers hold control despite the major currency pair’s latest pullback.

EURUSD: 30-minute chart

Trend: Limited downside expected