EUR/USD Price Analysis: Pair retraces recent losses, plods above 1.0800
- EUR/USD holds ground due to the ECB’s support of a hawkish stance.
- The previous week’s low appears to be the support followed by the 1.0750 psychological level.
- Nine-day EMA emerges as the key barrier following the 14-day EMA at 1.0874 level.
EUR/USD hovers above 1.0800 psychological level during the Asian session on Monday. The pair experiences upward pressure due to European Central Bank’s (ECB) policymakers defending their hawkish stance at the Jackson Hole Symposium.
ECB President Christine Lagarde highlighted the importance of establishing interest rates at a sufficiently restrictive level for a prolonged period to ensure the prompt attainment of the 2% medium-term inflation objective.
The pair could meet the immediate support around the previous week’s low at 1.0765, followed by the 1.0750 psychological level.
On the upside, the nine-day Exponential Moving Average (EMA) at 1.0847 appears to be the key resistance. A break above that level could support the EUR/USD pair to explore the area around the 14-day EMA at 1.0874 level, followed by the 1.0900 psychological level.
The 14-day Relative Strength Index (RSI) remains below 50, which suggests a bearish bias of the EUR/USD traders. The Moving Average Convergence Divergence (MACD) line stays below the centerline and shows divergence below the signal line, which suggests that recent momentum is weaker.
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.
