- EUR/USD attracts some buyers near 1.0900, the two-week high.
- The pair holds above the key 100-hour EMA with the overbought RSI condition.
- The first resistance level will emerge at 1.0960; 1.0852 acts as an initial support level for the pair.
The EUR/USD pair gains momentum around the 1.0900 mark during the early European trading hours on Thursday. The uptick of the major pair is supported by the softer US Dollar (USD) after the Federal Reserve (Fed) monetary policy decision. Investors will keep an eye on the upcoming European Central Bank (ECB) interest rate decision on Thursday, with no change in rate expected. Nonetheless, the ECB Press Conference might offer some hints about the further monetary policy path and give a clear direction to the pair.
According to the four-hour chart, the bullish look of EUR/USD remains intact as the major pair holds above the key 100-hour Exponential Moving Averages (EMA). However, with the Relative Strength Index (RSI) above 70, suggesting an overbought condition, further consolidation cannot be ruled out before positioning for any near-term EUR/USD appreciation.
The first upside barrier will emerge near a high of November 27 at 1.0960. The key resistance level is seen at the 1.1000 psychological round mark. Any decisive break above the latter will see a rally to a high of November 29 at 1.1017, followed by a high of August 4 at 1.1042.
On the downside, a low of November 22 at 1.0852 acts as an initial support level for EUR/USD. The critical contention level to watch is 1.0825, portraying the confluence of the 100-hour EMA and a low of November 17. A breach of this level will see a drop to a low of December 11 at 1.0741. Further south, the next stop is located at the lower limit of the Bollinger Band, and a round figure of 1.0700.
EUR/USD four-hour chart
-638381325664634291.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD slides further below 0.6700, lowest since September 11 amid bullish USD
AUD/USD drops to over a one-month low during the Asian session on Wednesday, amid the recent USD rally to a more than two-month high. A turnaround in the global risk sentiment, signs of economic softness and the lack of numerical details over China's fiscal stimulus contribute to driving flows away from the Aussie.
USD/JPY consolidates above 149.00, bullish potential seems intact
USD/JPY oscillates in a narrow band above the 149.00 mark on Wednesday and remains close to its highest level since August touched earlier this week. The risk-off impulse supports the safe-haven JPY, though the uncertainty over the BoJ's rate hike plans keeps a lid on any meaningful upside.
Gold price holds steady at around the $2,660 level amid mixed cues
Gold price struggles to capitalize on the previous day's positive move and trades with a mild negative bias during the Asian session on Wednesday. The USD stands near its highest level in more than two months amid bets for a less aggressive policy easing by the Fed and undermines the yellow metal.
XRP back above $0.54 as Ripple makes key announcements at Swell 2024
Ripple (XRP) holds steady above key support at $0.54 on Tuesday as payment remittance firm Ripple makes announcements regarding exchange partners for its stablecoin RLUSD that is in the final stages of its launch.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.