EUR/USD Price Analysis: Extends gains to near 1.0760 despite a bearish sentiment
- EUR/USD could gain further towards the psychological barrier at the 1.0800 level.
- Technical analysis suggests a confirmation of a bearish sentiment for the pair.
- The pair can find the major support around 1.0750 followed by the weekly low at 1.0722.
EUR/USD edges higher to near 1.0760 during the Asian session on Wednesday, extending gains for the second session. The psychological level at 1.0800 appears to be the key resistance followed by the 23.6% Fibonacci retracement level at 1.0820.
A breakthrough above the latter could exert upward pressure for the EUR/USD pair to reach the 21-day Exponential Moving Average (EMA) at the 1.0845 level aligned with the major barrier at the 1.0850 level. If the pair breaches the major level, it will navigate the region around the psychological level at 1.0900.
Technical analysis of the EUR/USD pair indicates a bearish momentum in the market, as evidenced by the 14-day Relative Strength Index (RSI) positioned below the 50 mark. Furthermore, the Moving Average Convergence Divergence (MACD), a lagging indicator, suggests a confirmation of this bearish sentiment, with the MACD line positioned below the centerline and exhibiting divergence below the signal line. These signals suggest a prevailing downward trend for the EUR/USD pair, indicating potential selling pressure in the market.
On the downside, the immediate support for the EUR/USD pair can be found at the psychological level at 1.0750 followed by the weekly low at 1.0722 recorded on Tuesday. A decisive break below the weekly low could put downward pressure on the pair to navigate the area around the psychological support at the 1.0700 level.
EUR/USD: Daily Chart
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(Note: The story was corrected at 4:55 GMT on Wednesday to say "bearish sentiment" instead of "bullish sentiment" in the second bullet point.)
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.
