EUR/USD Price Analysis: Moves upward toward 1.0700 ahead of Eurozone PMI
- EUR/USD continues the winning streak ahead of the Eurozone PMI.
- MACD indicates a shift in momentum towards a bullish trend.
- The major level at 1.0700 emerges as the key resistance following the 38.2% Fibonacci retracement.
EUR/USD continues to move upward for the fourth successive day, trading higher around the 1.0680 level during the Asian session on Tuesday. The pair receives upward support on the decline in the US Dollar (USD), coupled with an improved risk sentiment amid geopolitical tensions in the Middle East.
Market participants await the preliminary Eurozone October PMI. In Germany, both the German GfK Consumer Confidence Survey and PMI data are also on the agenda. Tuesday will feature a speech by ECB President Christine Lagarde. Looking ahead to Thursday, the ECB has its scheduled monetary policy meeting, and there's no anticipation of a change in interest rates.
The major level at 1.0700 emerges as the key resistance. A break above the latter could open the doors for the EUR/USD pair to explore the region around the 1.0750 psychological level, followed by the 38.2% Fibonacci retracement at 1.0764.
On the downside, the EUR/USD pair could meet the support at 1.0600 lined up with the 14-day Exponential Moving Average (EMA) at 1.0596.
The Moving Average Convergence Divergence (MACD) line lies below the centerline, signaling that the short-term average is beneath the long-term average. However, an interesting development is apparent as the line diverges above the signal line, hinting at a potential shift in momentum towards a bullish trend.
The EUR/USD pair implies a bullish momentum, as emphasized by a stronger bias revealed in the 14-day Relative Strength Index (RSI) holding above the 50 level.
EUR/USD: Daily Chart
(This story was corrected on October 24 at 07:12 GMT to say that the EUR/USD pair was supported by the US Dollar decline, not challenged by it.)
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.
