EUR/USD Price Analysis: Gains momentum above 1.0950 amid overbought condition


  • EUR/USD extends its upside above 1.0950, up 0.18% on the day.
  • The pair holds above the 50- and 100-hour EMA with the overbought RSI condition.
  • The first upside barrier is seen at 1.0978; the 1.0895–1.0900 zone acts as an initial support level for the pair.

The EUR/USD pair trades in positive territory for the fourth consecutive day during the early European session on Tuesday. The weaker US dollar and lower US Treasury bond yields lend some support to EUR/USD. Investors will take more cues from the Federal Open Market Committee (FOMC) Meeting Minutes on Tuesday, which could potentially provide insights into the trajectory of future policy rates.

According to the four-hour chart, the bullish potential of EUR/USD remains intact as the major pair holds above the 50- and 100-hour Exponential Moving Averages (EMA). It’s worth noting that the Relative Strength Index (RSI) holds in bullish territory above 50. However, the overbought RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/USD appreciation.

That being said, the immediate resistance level for EUR/USD is seen near the upper boundary of the Bollinger Band at 1.0978. The critical upside barrier is located near a psychological round figure and a high of August 11 at 1.1000. Any follow-through buying will see a rally to a high of August 4 at 1.1042, en route to a high of July 27 at 1.1149.

On the downside, the 1.0895–1.0900 region acts as an initial support level for the major pair. The mentioned level is the confluence of the psychological mark and a high of November 16. Further south, the next contention level will emerge near the lower limit of the Bollinger Band at 1.0817. A break below the latter will see a drop to the 50-hour EMA at 1.0759, followed by a high of November 9 at 1.0725.

EUR/USD four-hour chart

 

EUR/USD

Overview
Today last price 1.0962
Today Daily Change 0.0020
Today Daily Change % 0.18
Today daily open 1.0942
 
Trends
Daily SMA20 1.07
Daily SMA50 1.0637
Daily SMA100 1.0792
Daily SMA200 1.0806
 
Levels
Previous Daily High 1.0952
Previous Daily Low 1.0898
Previous Weekly High 1.0909
Previous Weekly Low 1.0665
Previous Monthly High 1.0695
Previous Monthly Low 1.0448
Daily Fibonacci 38.2% 1.0931
Daily Fibonacci 61.8% 1.0918
Daily Pivot Point S1 1.0909
Daily Pivot Point S2 1.0876
Daily Pivot Point S3 1.0855
Daily Pivot Point R1 1.0963
Daily Pivot Point R2 1.0985
Daily Pivot Point R3 1.1018

 

 

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