- 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
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