EUR/USD Price Analysis: Advances to near 1.0870 followed by barrier around 21-day EMA
- EUR/USD extends gains towards the immediate resistance at the 21-day EMA at 1.0882.
- Technical analysis suggests a direction shift towards bullish sentiment for the pair.
- A break above 1.0900 could lead the pair to reach the resistance zone around the 38.2% Fibonacci retracement.
EUR/USD consolidates on recent losses registered in the previous session, hovering around 1.0870 during the Asian session on Friday. The EUR/USD pair could find the immediate resistance zone around the 21-day Exponential Moving Average (EMA) at 1.0882 followed by the psychological level at 1.0900.
A firm break above the resistance zone could support the EUR/USD pair to navigate the region around the 38.2% Fibonacci retracement level at 1.0919 followed by the major barrier at 1.0950 level.
However, the technical analysis for the EUR/USD pair shows a bearish momentum in the market with the 14-day Relative Strength Index (RSI) positioned below the 50 mark.
Moreover, the Moving Average Convergence Divergence (MACD), a lagging indicator, suggests a shift in the pair's direction with the MACD line positioned below the centerline and showing a convergence below the signal line. Traders could wait for the MACD confirmation before making aggressive bets in the EUR/USD pair.
The immediate support for the EUR/USD pair can be found at the major level at 1.0850 following the psychological support of the 1.0800 level. A decisive break below the latter could prompt the pair to retest the weekly low at 1.0779 and could approach the major support level at 1.0750.
EUR/USD: Daily Chart
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Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
