EUR/USD Price Analysis: Eyes on 1.0700 mark amid bullish RSI
- EUR/USD breaks 21-DMA as bullish momentum continues amid a steady US Dollar.
- Banking turmoil weighs on US Treasury yields, boosting EUR/USD toward crucial levels.
- EUR/USD looks to regain 1.0700, as the market awaits directional clues from the FOMC meeting.
EUR/USD broke the 21-Daily Moving Average (DMA) on the previous trading day and the bullish momentum remains intact in the new week. The pair received a boost from a softer US Dollar led by falling US Treasury bond yields.
The banking turmoil is persistently hammering the global yields, especially the US Treasury yields. On the other side, reintroducing the swap line on a daily basis by global central banks will likely ease liquidity concerns, putting downward pressure on the safe-haven US Dollar. Therefore, the EUR/USD pair’s bullish bias is likely to remain intact.
The near-term support is seen at a trio point, a combination of multi-tested resistance at 1.0750 with a descending trend line starting from February's high at 1.1022 pegged with a 50-Daily Moving Average (DMA). A break above which will likely lead the EUR/USD toward February's high around the 1.1000 key psychological level.
Any downside fall will likely remain capped by the 21-DMA, sitting just above the previous day's closing point at the 1.0600 level. The last line of support will be a multi-month low at the 1.0520 level.
The Relative Strength Index (RSI) signals a higher high, suggesting more room for the upside.
The FOMC will be the key event this week, which will likely produce more directional clues for the pair. In the meantime, the EUR/USD price action will likely be muted.
EUR/USD: Daily chart
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