EUR/USD Price Analysis: Pair struggles below 1.0750 to continue the winning streak
|- EUR/USD treads waters below the 1.0750 psychological level to extend gains.
- MACD suggests that recent momentum is tepid and favoring a sideways trend.
- The 1.0700 psychological level appears to be initial support followed by the previous week’s low.
- The key barrier level is represented by the nine-day EMA, following the 1.0800 psychological level.
EUR/USD struggles to continue the winning streak with a mild negative bias, trading around the 1.0740 aligned to the 1.0750 psychological level. The pair experienced upward support due to a pullback in the US Dollar (USD).
However, investors generally expect the ECB to adopt a dovish stance and keep interest rates unchanged at the policy meeting on Thursday. Nevertheless, it's important to note that any unexpected or surprising actions or statements from the ECB could still have the potential to unsettle the markets and introduce a level of uncertainty about the EUR/USD pair’s trajectory.
The Moving Average Convergence Divergence (MACD) line remains below the centerline but shows convergence below the signal line. This configuration indicates that the recent market momentum is relatively weak and moves sideways.
The pair may encounter initial support around the 1.0700 psychological level followed by the previous week’s low at 1.0685. A break below the level could push the EUR/USD traders to navigate the area around June’s low at 1.0661, followed by the 1.0650 psychological level.
On the upside, a significant resistance level for the EUR/USD pair is represented by the nine-day Exponential Moving Average (EMA) at 1.0756, following the 1.0800 psychological level.
If the pair manages to break convincingly above this level, it could potentially open the door for further upward movement to explore the region around 21-day EMA at 1.0811 aligned to 23.6% Fibonacci retracement at 1.0826 level.
In the short term, the EUR/USD pair is anticipated to sustain a bearish sentiment as long as the 14-day Relative Strength Index (RSI) remains below the 50 level. This implies that the pair is likely to continue experiencing downward momentum.
EUR/USD: Daily Chart
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