EUR/USD Price Analysis: The key contention level is seen at the 1.0890–1.0900 zone


  • EUR/USD loses its recovery momentum near 1.0950 amid renewed USD demand.
  • The bullish outlook of the pair remains intact as it holds above the 50- and 100-hour EMAs.
  • The immediate resistance level is located at 1.0972; the 1.0890–1.0900 area acts as an initial support level for the pair.

The EUR/USD pair snaps the three-day winning streak during the early European session on Tuesday. A modest US Dollar (USD) demand dragged the major pair lower. As of writing, EUR/USD is trading near 1.0950, down 0.06% on the day.

The European Central Bank (ECB) President Christine Lagarde acknowledged that growth in the Eurozone is likely to remain weak for the rest of the year and that there are some indications of job growth slowing. However, Largarde added that while the short-term outlook remains subdued, the economy is set to strengthen again in the coming years as inflation drops further.

Technically, the EUR/USD pair maintains a bullish outlook as the major pair holds above the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. The upside momentum is supported by the Relative Strength Index (RSI) which stands in bullish territory above 50, indicating that further upside looks favorable.

The immediate resistance level for the major pair is located near the upper boundary of the Bollinger Band at 1.0972. The critical upside barrier to watch is a psychological round figure and a high of August 11 at 1.1000. A break above the latter will see the rally to a high of August 4 at 1.1042, followed by a high of July 27 at 1.1149.

On the downside, the 1.0890-1.0900 zone acts as an initial support level for the major pair. The mentioned level is the confluence of the lower limit of the Bollinger Band, a round mark, and the 50-hour EMA. Further south, the next contention level is a low of November 22 at 1.0852, and finally the 100-hour EMA at 1.0835. A breach of the latter will see a drop to a high of November 9 at 1.0725.

EUR/USD four-hour chart

 

EUR/USD

 

Overview
Today last price 1.0949
Today Daily Change -0.0008
Today Daily Change % -0.07
Today daily open 1.0957
 
Trends
Daily SMA20 1.0785
Daily SMA50 1.066
Daily SMA100 1.0792
Daily SMA200 1.0812
 
Levels
Previous Daily High 1.0959
Previous Daily Low 1.0925
Previous Weekly High 1.0965
Previous Weekly Low 1.0852
Previous Monthly High 1.0695
Previous Monthly Low 1.0448
Daily Fibonacci 38.2% 1.0946
Daily Fibonacci 61.8% 1.0938
Daily Pivot Point S1 1.0935
Daily Pivot Point S2 1.0913
Daily Pivot Point S3 1.0901
Daily Pivot Point R1 1.0969
Daily Pivot Point R2 1.0981
Daily Pivot Point R3 1.1003

 

 

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