EUR/USD Price Analysis: Attempts to retrace its recent losses, trades near 1.0920
- EUR/USD treads water near 1.0920 to retrace its recent losses.
- Traders may wait for confirmation as MACD indicates a potential shift to a downward trend for the pair.
- A break below 1.0900 could lead the pair to approach the 50-day EMA at 1.0878 and 38.2% Fibonacci retracement at 1.0867.
EUR/USD attempts to retrace its recent losses, trading near 1.0920 during the Asian session on Thursday. The EUR/USD pair faced downward pressure as the US Dollar (USD) strengthened, driven by a market shift towards caution amid concerns about global growth at the close of 2024.
The 14-day Relative Strength Index (RSI) is positioned below the 50 mark, indicating a bearish sentiment in the EUR/USD pair. Traders may exercise caution and wait for confirmation from the lagging indicator Moving Average Convergence Divergence (MACD). The MACD line is situated above the centerline but displays divergence below the signal line, suggesting a potential shift toward a downward trend for the EUR/USD pair.
The EUR/USD pair could find a key support around the psychological level at 1.0900. A firm break below the latter could put downward pressure on the EUR/USD pair to navigate the 50-day Exponential Moving Average (EMA) at 1.0878, followed by the 38.2% Fibonacci retracement at 1.0867 and the major support at 1.0850 level.
On the upside, the major level at 1.0950 could act as the immediate resistance for the EUR/USD pair. A breakthrough above the level could help the pair to explore the region around the psychological level at 1.1000 followed by the weekly high at 1.1038 level.
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.
