EUR/USD Price Analysis: Attempts a consolidation break as USD Index loses upside momentum

EUR/USD has delivered an upside break of the 20-pips range formed above 1.0900.
The ECB has confirmed that more interest rates are in the pipeline due to persistence in core inflation.
EUR/USD has shown a mild correction after confidently climbing above the 61.8% Fibonacci retracement at 1.0920.

Sagar Dua FXStreet

The EUR/USD pair is coming out of the woods as the US Dollar Index (DXY) has faced stiff barricades around 102.60 in the London session. The major currency pair has delivered a breakout of the consolidation formed in a narrow range of 20 pips.

S&P500 futures have extended losses in the European session amid caution due to an extended weekend in the United States. Meanwhile, investors are looking for a potential trigger that will bring an action in the FX domain.

On the Eurozone front, more interest rate hikes are anticipated from the European Central Bank (ECB) despite a threat to economic prospects. ECB President Christine Lagarde has confirmed that more interest rates are in the pipeline due to persistence in core inflation.

EUR/USD has shown a mild correction after confidently climbing above the 61.8% Fibonacci retracement (plotted from April 26 high at 1.1095 to May 31 low at 1.0635) at 1.0920. The 20-period Exponential Moving Average (EMA) at 1.0910 is providing a cushion to the Euro bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the bullish momentum is already active.

More gains will be added by the major currency pair on a break above May 02 low at 1.0942, which will drive the asset toward the psychological resistance at 1.1000 and May 08 high at 1.1054.

In an alternate scenario, a breakdown below 50% Fibo retracement at 1.0865 will drag the shared currency pair toward 38.2% Fibo at 1.0813 followed by June 14 low at 1.0775.

EUR/USD four-hour chart

EUR/USD

Overview
Today last price	1.0928
Today Daily Change	0.0006
Today Daily Change %	0.05
Today daily open	1.0922

Trends
Daily SMA20	1.077
Daily SMA50	1.088
Daily SMA100	1.0808
Daily SMA200	1.0546

Levels
Previous Daily High	1.0946
Previous Daily Low	1.0907
Previous Weekly High	1.0971
Previous Weekly Low	1.0733
Previous Monthly High	1.1092
Previous Monthly Low	1.0635
Daily Fibonacci 38.2%	1.0922
Daily Fibonacci 61.8%	1.0931
Daily Pivot Point S1	1.0904
Daily Pivot Point S2	1.0886
Daily Pivot Point S3	1.0865
Daily Pivot Point R1	1.0943
Daily Pivot Point R2	1.0964
Daily Pivot Point R3	1.0982

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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