- EUR/USD trades in negative territory for the second consecutive day near 1.0875.
- The pair resumes a bearish outlook below the key EMA; RSI momentum indicator holds below the 50-midline.
- The initial support level is located at 1.0840; the first upside barrier will emerge at 1.0882.
The EUR/USD pair loses momentum below the 1.0900 mark during the early European session on Friday. The firmer US Dollar (USD) following the upbeat US February PPI data and Initial Jobless Claims have triggered the possibility that the Federal Reserve might delay the interest rate cuts next week, which exerts some selling pressure on the major pair. EUR/USD currently trades near 1.0875, losing 0.09% on the day.
According to the four-hour chart, EUR/USD resumes a bearish outlook as the major pair holds below the key 100-period Exponential Moving Averages (EMA). The downward momentum is also supported by the Relative Strength Index (RSI), which lies below the 50-midline, suggesting the path of least resistance is to the downside.
The initial support level for EUR/USD is located near a low of March 5 at 1.0840. The key contention level is seen at the confluence of a low of February 22 and a psychological mark at 1.0800. The additional downside filter to watch is a low of February 20 at 1.0761, followed by a low of February 15 at 1.0725.
On the bright side, the first upside barrier will emerge at the 100-period EMA at 1.0882. Any follow-through buying above the latter will attract some buyers to a high of March 14 at 1.0955, followed by the upper boundary of the Bollinger Band at 1.0971. A decisive break above this level will see a rally to 1.1000, representing a round mark and a high of January 11.
EUR/USD four-hour chart
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