EUR/USD Price Analysis: The key contention level is seen at 1.0930
|- EUR/USD loses ground near 1.0970, down 0.02% ahead of Eurozone inflation data.
- The bullish outlook remains intact as it holds above 50- and 100-hour EMA; RSI indicator stands in bullish territory above 50.
- 1.1000 acts as an immediate resistance level; the critical support level is located at 1.0930.
The EUR/USD pair trades with modest intraday losses during the early European session on Thursday. The pair currently trades near 1.0970 after retreating from nearly four-month highs of 1.1017. Market players await the Italian, French, and Eurozone inflation data on Thursday. The Eurozone Harmonized Index of Consumer Prices (HICP) is estimated to grow 3.9% YoY in November from the previous reading of 4.2%.
From the technical perspective, EUR/USD maintains a positive vibe as the major holds above the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) stands in bullish territory above 50, indicating the path of least resistance for EUR/USD is to the upside.
The confluence of the boundary of the Bollinger Band and a psychological round mark at 1.1000 acts as an immediate resistance level for the pair. The next upside barrier will emerge at a high of November 29 at 1.1017, followed by a high of August 4 at 1.1042. Any follow-through buying above the latter will see the rally to a high of July 27 at 1.1150.
On the other hand, the key support level is located at 1.0930, portraying the lower limit of the Bollinger Band and the 50-hour EMA. Further south, the next contention is seen at a low of November 24 at 1.0895. The additional downside filter to watch is the 100-hour EMA at 1.0867, and finally a low of November 17 at 1.0825.
EUR/USD four-hour chart
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