EUR/USD Price Analysis: The crucial upside barrier is located at the 1.0800-1.0805 region, US CPI data looms
|- EUR/USD edges lower to 1.0766 on renewed US Dollar demand.
- The bearish outlook of the pair remains intact below the key EMA; RSI indicator lies below the 50-midlines.
- The key resistance level will emerge at the 1.0800–1.0805 zone; the first support level is seen near 1.0753.
The EUR/USD pair trades on a negative note for the second consecutive day during the early European session on Tuesday. Markets turn to a cautious mood ahead of the US key data. The US Consumer Price Index (CPI) is due later on Tuesday. The softer US inflation data could potentially boost the Fed's confidence that inflation will return to its target and weigh on the US Dollar (USD). At press time, EUR/USD is trading at 1.0766, losing 0.07% on the day.
According to the four-hour chart, EUR/USD keeps the bearish vibe unchanged as the major pair is below the key 100-period Exponential Moving Averages (EMA). Additionally, the downward momentum is reinforced by the Relative Strength Index (RSI), which sits below the 50-midlines, hinting that further decline cannot be ruled out
The key resistance level for the EUR/USD pair will emerge at the 1.0800–1.0855 region, representing the upper boundary of the Bollinger Band, a psychological round mark, and a high of February 12. The additional upside filter to watch is the 100-period EMA at 1.0815. Any follow-through buying above this level will pave the way to a high of January 26 at 1.0885.
On the downside, the lower limit of the Bollinger Band at 1.0753 acts as an initial support level for EUR/USD. A decisive break below the latter will see a drop to a low of December 8 at 1.0723, followed by a low of November 9 at 1.0660.
EUR/USD four-hour chart
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