EUR/USD Price Analysis: Retraces the recent gains near 1.0550 ahead of ZEW Survey

EUR/USD trades lower ahead of the ZEW Economic Sentiment Survey.
MACD indicated a shift in momentum towards a bullish trend.
21-day EMA appears as the barrier, followed by the 1.0600 psychological level.

Akhtar Faruqui FXStreet

EUR/USD pulls back from the recent gains, trading lower around 1.0550 psychological level during the Asian session on Tuesday. Investors anticipate the release of the ZEW Economic Sentiment Survey for October, with expectations pointing toward an improvement from -8.9 to -8.0.

Additionally, the European Central Bank (ECB) President Christine Lagarde has informed euro-area finance ministers that the ECB is closely monitoring energy prices and the conflict between Israel and Hamas as potential sources of inflation risks.

The 21-day Exponential Moving Average (EMA) at 1.0587 emerges as the immediate resistance. A break above the latter could support the EUR/USD pair to explore the region near the 1.0600 major level, followed by the 23.6% Fibonacci retracement at the 1.0643 level.

On the flip side, the weekly low at 1.0508 could act as immediate support lined up with the 1.0500 psychological level.

The Moving Average Convergence Divergence (MACD) line lies below the centerline indicating that the short-term average is beneath the long-term average. However, a noteworthy development is observed as the line diverges above the signal line, signaling a potential shift in momentum toward a bullish trend.

However, the EUR/USD pair maintains a prevailing bearish momentum, underscoring a weaker bias. This is evidenced by the 14-day Relative Strength Index (RSI) holding below the 50 level.

EUR/USD: Daily Chart

EUR/USD: additional important levels

Overview
Today last price	1.055
Today Daily Change	-0.0011
Today Daily Change %	-0.10
Today daily open	1.0561

Trends
Daily SMA20	1.0571
Daily SMA50	1.0721
Daily SMA100	1.0832
Daily SMA200	1.0824

Levels
Previous Daily High	1.0563
Previous Daily Low	1.0511
Previous Weekly High	1.064
Previous Weekly Low	1.0496
Previous Monthly High	1.0882
Previous Monthly Low	1.0488
Daily Fibonacci 38.2%	1.0543
Daily Fibonacci 61.8%	1.0531
Daily Pivot Point S1	1.0527
Daily Pivot Point S2	1.0493
Daily Pivot Point S3	1.0475
Daily Pivot Point R1	1.0579
Daily Pivot Point R2	1.0597
Daily Pivot Point R3	1.063

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.

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