• EUR/USD extends the recovery to 3-week highs past 1.0100.
• Further gains lie ahead once the 7-month resistance line is cleared.

EUR/USD regains upside traction and climbs to levels beyond 1.0100, or multi-week highs, on Friday.

Further upside should now meet the temporary hurdle at the 55-day SMA at 1.0152 ahead of the 7-month resistance line, today near 1.0200, an area also coincident with a minor up barrier at 1.0202 (August 17). The pair should see its downside pressure mitigated once this region is cleared.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0760.

EUR/USD daily chart