EUR/USD Price Analysis: Moves below 1.0900, next support at nine-day EMA
- EUR/USD loses ground as US Dollar attempts to rebound.
- Technical indicators suggest revisiting the major level at 1.0950 near the three-month high.
- The nine-day EMA at 1.0867 could act as the key support followed by the major level at 1.0850.
EUR/USD retraces the recent gains, trading below the psychological barrier at the 1.0900 level during the Asian session on Friday. The weakening of the Euro could be attributed to the improved US Dollar (USD). The Greenback recovers on the back of improved US Treasury yields.
The nine-day Exponential Moving Average (EMA) at 1.0867 appears to be the key support level aligned with the next major level at 1.0850. and the 23.6% Fibonacci retracement at 1.0842. A decisive break below the support region could push the EUR/USD pair to navigate the psychological level at 1.0800.
The technical indicators for the EUR/USD pair support the current upward trend. The 14-day Relative Strength Index (RSI) above 50 indicates bullish sentiment, indicating that the pair could revisit the major level at 1.0950, nearing the three-month high at 1.0965 level. A breakthrough above the latter could support the bulls of the EUR/USD pair to navigate the resistance area around the 1.1000 psychological level.
Furthermore, the Moving Average Convergence Divergence (MACD) line is above the centerline and the signal line, indicating a bullish momentum in the pair.
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.
