• EURUSD stretches to fresh highs ahead of important PMI data.

  • Overbought signals strengthen near August’s hurdles.

EURUSD stepped into the 1.0900 zone after an exponential rally last week, marking a new 2½-month high of 1.0934 during Monday’s early European trading hours.

 

The pair has passed the halfway mark to July's peak from the October low and some profit-taking would not be a big surprise as the RSI and the stochastic oscillator are hinting at overbought conditions while the price is testing its August’s resistance levels.

Encouragingly though, the 20-day exponential moving average (EMA) has crossed above the 50-day EMA and is preparing for another intersection with the 200-day EMA, indicating the possibility of the positive trend continuing. Meanwhile, it would be also interesting to see if the 50- and 200-day EMAs will manage to reverse the death cross registered at the end of September.

The 1.0940 caution area, which overlaps with the 50% Fibonacci retracement of the 2021-2022 downtrend, is under examination. Breaking the wall could propel the bulls into an uptrend towards the 1.1000 psychological level. The former resistance at 1.1040 and the 1.1100 number could attract attention, especially the latter, as the tentative descending trendline from May 2021 happens to be there too.

Alternatively, a backward flip beneath 1.0885 might seek support around the upper band of the broken bullish channel at 1.0820. Should sellers dominate there, the decline could worsen towards the 20- and 200-day EMAs at 1.0740. The 50-day EMA might also be on guard near 1.0700. If the latter proves fragile, the next stop could be at the channel’s lower band seen at 1.0650.

All in all, EURUSD retains a positive monthly picture, with the bulls looking for a close above 1.0940 to run higher ahead of Eurozone’s flash business PMI figures due on Thursday. Given the overbought signals though, additional gains could come with some delay. 

EURUSD

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD retests daily lows near 1.0850 on softer US PPI

EUR/USD retests daily lows near 1.0850 on softer US PPI

EUR/USD remains on the defensive against the backdrop of another positive day in the US Dollar, always amid intense tariff jitters and weaker-than-expected US Producer Prices in February.

EUR/USD News
Gold extends weekly uptrend, closes in on $2,950

Gold extends weekly uptrend, closes in on $2,950

Gold continues to push higher toward $2,950 after closing the previous two days in positive territory. The precious metal benefits from the risk-averse market atmosphere as investors grow increasingly concerned about trade wars causing an economic downturn.

Gold News
GBP/USD stay defensive near 1.2950 as risk-off mood persists

GBP/USD stay defensive near 1.2950 as risk-off mood persists

GBP/USD is on the defensive near 1.2950 in the European session on Thursday. The pair faces headwinds from intensifying tariff war globally and a pause in the US Dollar downtrend. Traders look forward to the US PPI data for fresh directional impetus. 

GBP/USD News
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation

Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation

Metaverse tokens are cryptocurrencies associated with virtual worlds, digital economies, and immersive online experiences. Tokens like Sandbox, Decentraland, and Axie Infinity, three of the most prominent assets during the Metaverse boom of 2021, continue to face correction since they topped in early December.

Read more
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances

Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances

The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Majors

Cryptocurrencies

Signatures

Best Brokers of 2025