• EUR/USD bounces off three-week-old falling support line, forming part of falling wedge bullish chart formation.
• Oversold RSI, positioning for top-tier EU, US data allow Euro to print mild gains.
• Eurozone PMI, US ISM Services PMI and risk catalysts eyed for clear directions.
• Downside break of ascending support line from May 31, bearish MACD signals favor Euro sellers.

EUR/USD licks its wounds at the lowest level since July 07 as it bounces off a three-week-old descending support line during early Thursday, defensive around 1.0940 by the press time.

In doing so, the Euro pair takes clues from the oversold RSI (14) line, as well as the market’s positioning for the inflation and employment clues from the Eurozone and the US. Furthermore, the recently firmer S&P500 Futures and a pullback in the Treasury bond yields also allow the EUR/USD pair to consolidate recent losses.

However, the EUR/USD bears remain hopeful unless the quote stays below the support-turned-resistance line stretched from May 31, around 1.0980 by the press time.

Following that, the 38.2% Fibonacci retracement of its May-July upside, near 1.1040, and the stated falling wedge’s top line, close to 1.1065, will be in the spotlight.

Should the EUR/USD price rises past 1.1065, the pair can rise towards the previous monthly high of 1.1275 with the theoretical target of the falling wedge breakout of 1.1420 likely luring the Euro buyers afterward.

On the flip side, the stated wedge’s bottom line puts a floor under the EUR/USD price near 1.0910 ahead of highlighting the 61.8% Fibonacci retracement level of 1.0880 and the previous monthly bottom of around 1.0835