• The EUR/USD pair rebounds from last week's lows and approached key resistance. 

  • The indicator for the moving average (MA) displays a negative sign for the near term.

  • The momentum oscillator (RSI) holds onto a natural zone with a decline in momentum.

EUR/USD traded in a narrow sideways range during the initial European session. The major currency pairs couldn’t make any meaningful moves on the previous day. At press time, EUR/USD traded at 1.0715, down 0.02% on a daily basis. 

4-hour candlestick graph  

EURUSD

This Outlook Relies on a Four-Hour Timeframe 

However, EUR/USD clings to the 1.0708 support level after falling from yesterday's high level of 1.0731. Furthermore, the crucial resistance level of 1.0751 has been elusive since June 3rd, keeping the European currency trading at the current levels. 

On the 4-hour chart, the 21-period crosses below the 50-period on the Moving Average (MA) indicators, which suggests a downside trend in the near term. Meanwhile, the Relative Strength Index (RSI) 51.78 records 51.78 on the value line with a decrease in momentum. Any uptick would support the buying power and vice versa. 

On the other hand, the market participants should wait for a trend confirmation, while the support level of 1.0708 holds price from falling as the resistance level of 1.0751 holds the price from further gains.

The aforementioned support and resistance levels are the keys to predictions of the possible next step that is more likely to occur. Consequently, sellers would wait for a divisive breach of the 1.0708 hurdle. a successful close below that level for the 4-hour candlestick would pave the way towards the 1.0678 support level. Below that level, market participants' eyes would be on 1.0653, the low of June 3rd. 

On the flip side, if EUR/USD wants to make further gains, it should succeed in conquering the 1.0751 hurdle. Subsequent to a decisive breach of the aforementioned level, traders would target the 1.0787 resistance level, followed by the 1.0816 resistance level.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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