- EUR/USD moves sideways post recent losses amid a stable US Dollar.
- The major level at 1.0950 appears to be an immediate resistance level.
- A break below the 1.0900 could lead the pair to navigate the 50-day EMA at 1.0888.
EUR/USD consolidates after posting recent losses in the previous session, trading near 1.0930 during the Asian session on Wednesday. The EUR/USD pair could meet the barrier at the major level at 1.0950 following the psychological resistance area at 1.1000.
A breakthrough above the psychological level could support the EUR/USD pair to revisit the previous week’s high at 1.1038 level. However, the 14-day Relative Strength Index (RSI) for the EUR/USD pair has dropped below the 50 mark, signaling a bearish momentum.
In addition, the Moving Average Convergence Divergence (MACD) line, while still above the centerline, is showing divergence below the signal line, hinting at a potential shift toward a downward trend. Traders may exercise caution and await confirmation before making decisions in the pair.
On the downside, the EUR/USD pair could meet immediate support at the psychological level of 1.0900. If this level is breached decisively, it could exert downward pressure on the pair, potentially leading it toward the 50-day Exponential Moving Average (EMA) at 1.0888, followed by the 38.2% Fibonacci retracement level at 1.0867 and significant support at 1.0850. Traders may closely monitor these levels for potential price movements.
EUR/USD: Daily Chart
Read More:Remains stable near 1.0930, bearish sentiment looms
2024-01-10 05:38:29