- EUR/USD holds positive ground near 1.0895 in Friday’s early European session.
- The pair maintains a positive stance on the 4-hour chart above the 100-period EMA, with a bullish RSI indicator.
- The first resistance level is seen in the 1.0900-1.0905 zone; the initial support level is located near 1.0860.
The EUR/USD pair trades in positive territory for the second consecutive day around 1.0895 during the early European session on Friday. The European Central Bank (ECB) decided to cut interest rates by 25 basis points (bps) at its June meeting on Thursday, as widely anticipated by markets. However, traders did not expect a July rate cut, and the rate differential between the Euro and USD is unlikely to widen as much as initial expectations. This, in turn, provides some support to the Euro against the Greenback.
From the technical perspective, EUR/USD keeps the bullish vibe unchanged on the 4-hour chart as the major pair holds above the key 100-period Exponential Moving Average (EMA). Additionally, the upward momentum is supported by the Relative Strength Index (RSI), which stands in the bullish zone near 60, suggesting the path of least resistance is to the upside.
The first upside barrier will emerge at the 1.0900-1.0905 region, representing the upper boundary of the Bollinger Band and psychological level. Further north, the next hurdle is seen near 1.0940, a high of March 21. The additional upside filter to watch is 1.0964 (high of March 13), followed by 1.0981 (high of March 8).
On the flip side, the initial support level for the pair is located around 1.0860, portraying the confluence of a low of June 6 and the lower limit of Bollinger Band. The next contention level to watch is the 100-period EMA at 1.0846. Any follow-through selling below this level will attract some sellers to 1.0811, a low of May 31.
EUR/USD 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.