• EUR/USD prints the second U-turn from 50-EMA in a week to prod fortnight-old downward trajectory.
• Looming bear cross on MACD, hawkish Fed clues and upbeat US data keep Euro bears hopeful.
• Weekly resistance line restricts immediate upside; 1.0800 appears a tough nut to crack for bears.

EUR/USD portrays the typical pre-data consolidation around 1.0875 as it prints the first daily gains in three amid early Friday. In doing so, the Euro pair bounces off the 50-Exponential Moving Average (EMA) support for the second time in the last one week as traders prepare for the first readings of Eurozone inflation for June and the Federal Reserve’s (Fed) favorite inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index, for May.

Also read: EUR/USD steadies below 1.0900 as Fed hawks, US data supersede ECB optimists, EU/US inflation clues eyed

Although the key EMA defends Euro buyers around 1.0850, the looming bear cross on the MACD and a one-week-old descending resistance line, around 1.0940 at the latest, challenge the major currency pair’s immediate upside.

Even if the EUR/USD pair buyers manage to cross the 1.0940 hurdle, the 23.6% Fibonacci retracement of the March-April upside and the monthly high, respectively near 1.0960 and 1.1015, could challenge the upside before giving control to the bulls.

Meanwhile, a downside break of the 50-EMA support of near 1.0850 could quickly drag the EUR/USD price to the 1.0800 support confluence comprising the 100-EMA and 50% Fibonacci retracement

Following that, the 61.8% Fibonacci retracement and a three-month-old rising support line, near 1.0735 and 1.0715 in that order, will be in the spotlight.

EUR/USD: Daily chart

Trend: Limited recovery expected