EUR/USD Price Analysis: The key barrier is seen at the 1.0600 mark
|- EUR/USD holds below the 1.0600 barrier amid the risk-off mood.
- The key immediate resistance level for the pair is seen at 1.0600; 1.0560 acts as an initial support level.
- Relative Strength Index (RSI) is in the 40-60 range, indicating non-directional movement.
The EUR/USD pair remains capped under the 1.0600 psychological mark during the early European session on Friday. A rise in US Treasury bond yields and the escalating geopolitical tensions in the Middle East might boost the safe-haven asset demand like USD and act as a headwind for the major pair. EUR/USD currently trades near 1.0576, losing 0.06% for the day.
Technically, the EUR/USD pair sticks to the range-bound theme on the four-hour chart. The major pair holds above the 50- and 100-hour Exponential Moving Averages (EMAs) but the long-term EMA is above the short-term EMA, indicating the path of least resistance for the pair is to the downside.
That being said, the key immediate resistance level for EUR/USD is seen near the confluence of a psychological round mark and the the upper boundary of Bollinger Band at 1.0600. Any follow-through buying above the latter will see a rally to the next barrier at 1.0635 (high of October 11). Further north, the major pair will challenge the next hurdle at 1.0671 (high of September 22), followed by 1.0735 (high of September 20).
On the other hand, the 50-hour EMA at 1.0560 acts as an initial support level for EUR/USD. The critical support contention is located at 1.0523, representing a low of October 18 and a lower limit of the Bollinger Band. The next downside stop to watch is a round figure at 1.0500. A decisive break below the latter will see a drop to a low of October 4 at 1.0450.
It’s worth noting that the Relative Strength Index (RSI) is located in the 40-60 zone, suggesting a non-directional movement in the pair.
EUR/USD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.