• EUR/USD retreats from intraday high during three-day uptrend.
• Firmer oscillators, a clear break of 50-SMA favor buyers.
• 100-SMA, one-month-old horizontal area challenge further upside.
• Preliminary readings of EU inflation, US ADP Employment Change in focus.

EUR/USD bulls take a breather around 1.0035, after refreshing the daily top to 1.0046, as cautious mood probes initial optimism during Wednesday’s European session.

That said, the major currency pair’s recent pullback could be linked to the anxiety ahead of flash/preliminary readings of the Eurozone HICP for August, expected at 9.0% versus 8.9% prior. Following that, the US ADP Employment Change for August, the early signal for Friday’s Nonfarm Payrolls (NFP), expected 200K versus 128K prior, will also be important to watch for fresh impulse.

Also read: EUR/USD stays defensive above 1.0000 despite hawkish ECBspeak ahead of EU inflation

It’s worth noting, however, that the quote’s successful upside break of the 50-SMA, backed by firmer RSI (14) and bullish signals from the MACD, keeps EUR/USD buyers hopeful.

With this, a convergence of the 100-SMA and area comprising multiple levels marked since late July, near 1.0100, appears a tough nut to crack for the bulls.

Even if the quote rises past 1.0100, the 200-SMA hurdle surrounding 1.0150 may act as an upside filter.

On the flip side, the 50-SMA level near 0.9985 could restrict the immediate downside of the EUR/USD.

Following that, the weekly support line near 0.9935 and the 0.9900 round figure could regain the bear’s attention.

Overall, EUR/USD bulls are in control ahead of crucial data points.

EUR/USD: Four-hour chart

Trend: Limited upside expected