EUR/USD Price Analysis: Hovers around the major level of 1.0850
- EUR/USD could meet the immediate resistance at the 38.2% Fibonacci retracement level of 1.0864.
- The lagging indicator MACD implies a potential shift towards bullish momentum for the pair.
- The key support area appears around the 21-day EMA at 1.0814 and the psychological level of 1.0800.
EUR/USD continues its winning streak that began on February 14, with the subdued US Dollar (USD), potentially influenced by the lower US Treasury yields. Consequently, during Tuesday's Asian session, the EUR/USD pair hovers around 1.0850.
Immediate resistance levels for the EUR/USD pair are identified at the 38.2% Fibonacci retracement level of 1.0864, followed by February's high of 1.0897, which aligns with the significant psychological barrier at 1.0900.
The technical analysis suggests a bullish sentiment for the EUR/USD pair. The 14-day Relative Strength Index (RSI) is positioned above the 50 mark, indicating strength in the upward momentum.
Additionally, the Moving Average Convergence Divergence (MACD) shows a divergence above the signal line, despite being below the centerline. This lagging indicator implies a potential shift towards bullish momentum for the EUR/USD pair.
On the downside, the EUR/USD pair could find the key support around the 21-day Exponential Moving Average (EMA) at 1.0814 followed by the psychological support of 1.0800 level. A break below this level could prompt the pair to retest February’s low at 1.0694 level.
EUR/USD: Daily Chart
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
