EUR/USD Price Analysis: Remains capped below the 1.0900 mark amid overbought condition

EUR/USD remains capped below the 1.0900 barrier on Wednesday.
The pair holds above the 50- and 100-hour EMAs with the overbought RSI condition.
The immediate resistance level is seen at the 1.0895-1.0900 area; the initial support level is located at 1.0800.

Lallalit Srijandorn FXStreet

The EUR/USD pair surges above 1.0850 but faces rejection below the 1.0900 mark during the early European trading hours on Wednesday. The weaker-than-expected US inflation data exerts some selling pressure on the US Dollar (USD) and supports the EUR/USD pair. That being said, the markets anticipate that the Federal Reserve (Fed) is done with the hiking cycle this year and expect to deliver rate cuts earlier in the second quarter (Q2) of 2024. The major pair currently trades around 1.0878, losing 0.03% on the day.

According to the four-hour chart, the major pair holds above the 50- and 100-hour Exponential Moving Averages (EMAs), suggesting the path of least resistance to the upside. The Relative Strength Index (RSI) holds in bullish territory above 50. However, the overbought RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/USD appreciation.

The 1.0895-1.0900 region acts as an immediate resistance level for the pair. The mentioned level is the confluence of the upper boundary of the Bollinger Band and a psychological round figure. Further north, the next barrier is seen at 1.0930 (high of August 22). The additional upside filter to watch is a high of August 30 at 1.0945, en route to 1.1000 (a round figure and a high of August 11).

On the flip side, the initial support level is located near the psychological round mark at 1.0800. The next contention level will emerge at a high of November at 1.0756, followed by 1.0713 (the 50-hour EMA), and 1.0672 (the 100-hour EMA). A breach of the latter will see a drop to a low of November 3 at 1.0615.

EUR/USD four-hour chart

EUR/USD

Overview
Today last price	1.0878
Today Daily Change	-0.0005
Today Daily Change %	-0.05
Today daily open	1.0883

Trends
Daily SMA20	1.0642
Daily SMA50	1.0624
Daily SMA100	1.0792
Daily SMA200	1.0803

Levels
Previous Daily High	1.0888
Previous Daily Low	1.0693
Previous Weekly High	1.0756
Previous Weekly Low	1.0656
Previous Monthly High	1.0695
Previous Monthly Low	1.0448
Daily Fibonacci 38.2%	1.0813
Daily Fibonacci 61.8%	1.0767
Daily Pivot Point S1	1.0755
Daily Pivot Point S2	1.0627
Daily Pivot Point S3	1.056
Daily Pivot Point R1	1.0949
Daily Pivot Point R2	1.1016
Daily Pivot Point R3	1.1144

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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