EUR/USD Price Analysis: Consolidates near six-month low around 1.0650
- EUR/USD experiences downward pressure due to improved US Dollar (USD).
- RSI indicates a predominant bearish sentiment in the market.
- The 1.0700 psychological level aligned to the 21-day EMA emerges as the key resistance.
EUR/USD continues the downward trajectory, trading lower around 1.0640 during the Asian session on Friday. The improved US Dollar (USD) exerts downward pressure on the pair, which could be attributed to the upbeat US Treasury yields.
The pair could meet a key support around the six-month low at 1.0616 aligned to the 1.0600 psychological level.
On the upside, the EUR/USD pair could face a challenge around the 1.0700 psychological level, followed by the 21-day Exponential Moving Average (EMA) at 1.0735.
A firm break above the latter could support the Euro buyers to explore the region around the 1.0750 psychological level lined up with the 23.6% Fibonacci retracement at the 1.0772 level.
The Moving Average Convergence Divergence (MACD) line remains below the centerline and aligns closely with the signal line. This setup indicates a state of equilibrium, implying that the momentum in the underlying asset's price is relatively neutral, without a clear bias towards either bullish or bearish sentiment.
However, the momentum observed in the EUR/USD pair suggests a prevailing bearish sentiment in the market, given that the 14-day Relative Strength Index (RSI) continues to stay below the 50 level.
EUR/USD: Daily Chart
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.
