EUR/USD Price Analysis: Rises toward 1.1000 ahead of three-month highs

• EUR/USD may extend its upside as the daily chart analysis shows a bullish inclination.
• The pair may face a potential resistance near a three-month high at 1.0915.
• The lower boundary of the ascending channel around 1.0830 level could act as immediate support.

EUR/USD continues its winning streak for the third successive day, trading around 1.0870 during the Asian hours on Friday. The EUR/USD pair found support as the US Dollar (USD) weakened following softer-than-expected US Consumer Price Index (CPI) data in June. This has increased expectations of a potential Federal Reserve (Fed) rate cut in September.

The technical analysis of the daily chart shows a bullish inclination, with the pair moving within an ascending channel. Furthermore, the 14-day Relative Strength Index (RSI), a momentum indicator, is above the level of 50, confirming the bullish trend for the EUR/USD pair. Continued upward movement could reinforce the pair's bullish bias.

The EUR/USD pair faces potential resistance near a three-month high at 1.0915. Further barrier appears around the upper boundary of the ascending channel around 1.0960. A breakthrough above this level could lead the pair to explore the region around the psychological level of 1.1000.

On the downside, initial support for EUR/USD lies near the lower boundary of the ascending channel around the 1.0830 level, followed by the nine-day Exponential Moving Average (EMA) at the level of 1.0822.

A breach below the latter might increase downward pressure, targeting support around the key level of 1.0670, potentially serving as a rebound support level.

EUR/USD: Daily Chart