- EUR/USD extends its gains ahead of inflation data from the Eurozone.
- Technical indicators suggest positive sentiment to aim for the significant level at 1.1050.
- 1.0900 acts as key support followed by the seven-day EMA and the 23.6% Fibonacci retracement level.
EUR/USD attempts to extend its gains for the second consecutive session, hovering around 1.0920 during the Asian hours on Tuesday. The anticipated Harmonized Index of Consumer Prices (HICP) data from the Eurozone on Tuesday is expected to remain unchanged across all levels. This moderate inflation outlook might contribute to the stability of the EUR/USD pair.
However, the technical indicators for the EUR/USD pair suggest a favorable upward trend. The 14-day Relative Strength Index (RSI) maintaining a position above the 50 mark signals positive sentiment, indicating a potential re-test of the psychological resistance at the 1.1000 level, followed by the two-month high at 1.1017.
Moreover, the Moving Average Convergence Divergence (MACD) reinforces the overall positive momentum, with the MACD line positioned above the centerline and the signal line. As a lagging indicator, it signals a confirmation of the potential upward trend.
The prevailing bullish sentiment, supported by the MACD, could empower the EUR/USD pair to surpass the current barrier and aim for a significant level at 1.1050.
Looking at the downside, the psychological support at 1.0900 emerges as a crucial level, followed by the seven-day Exponential Moving Average (EMA) at 1.0893 and the 23.6% Fibonacci retracement level at 1.0884.
Should there be a decisive break below the latter, it might intensify bearish pressure on the EUR/USD pair, leading to a potential move towards the psychological area surrounding the 38.2% Fibonacci retracement at 1.0801.
EUR/USD: Daily Chart
-638385602711678938.png)
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
AUD/USD looks at the RBA for near-term direction
AUD/USD resumed its rebound and briefly surpassed the 0.6600 barrier on the back of the renewed and marked resurgence of the downward bias in the US Dollar. Investors, in the meantime, expect the RBA to keep its rates unchanged on Tuesday.
EUR/USD: Price action hinges on the US election and the Fed
EUR/USD managed to trespass the key 1.0900 hurdle and print new highs following the Greenback’s offered stance as investors warmed up for the US election and the FOMC event later in the week.
Gold trades around $2,730
Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum (ETH) is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.