• EUR/USD picks up bids to extend week-start rebound as markets await German/US inflation data.
• 200-EMA, fortnight-long rising trend line together restricts immediate downside.
• Bullish MACD signals, gradually rising RSI line keeps Euro buyers hopeful.
• Key Fibonacci retracement levels can prod the EUR/USD upside, depending upon the CPI/HICP data.

EUR/USD remains firmer for the second consecutive day, refreshing intraday high near 1.0765 during the mid-Asian session on Tuesday, as traders brace for the rollercoaster week comprising the US inflation and the key central bank events.

In doing so, the Euro pair extends the previous day’s rebound from the 10-day Exponential Moving Average (EMA) while justifying the bulish MACD signals and upbeat RSI (14) line, not overbought.

With this, the EUR/USD buyers are capable enough to mark another battle with the 50% Fibonacci retracement of the pair’s January-April upside, near 1.0790.

Following that, the late May swing high of near 1.0830 and the 38.2% Fibonacci retracement level of around 1.0865 act as extra upside filters for the Euro bulls to smash for conviction.

On the flip side, the EUR/USD pair’s pullback remains elusive unless the quote stays beyond the 10-EMA support of around 1.0745. More importantly, a convergence of the 200-EMA and a fortnight-old rising support line, near 1.0690, appears a tough nut to crack for the EUR/USD bears.

In a case where the Euro bears manage to smash the 1.690 support an ascending support line stretched from January 2023, close to 1.0645, will be in the spotlight.

Overall, EUR/USD is likely to remain firmer unless breaking 1.0690. Also supporting the Euro buyers is the divergence between the market’s bias about the European Central Bank (ECB) and the Federal Reserve (Fed).

Also read: EUR/USD edges higher past 1.0750 as ECB garners more hawkish bets than Fed, German/US inflation eyed

EUR/USD: Daily chart

Trend: Further upside expected