EUR/USD Price Analysis: The key contention level is seen at the 1.0890–1.0900 zone

The EUR/USD pair snaps the three-day winning streak during the early European session on Tuesday. A modest US Dollar (USD) demand dragged the major pair lower. As of writing, EUR/USD is trading near 1.0950, down 0.06% on the day.

The European Central Bank (ECB) President Christine Lagarde acknowledged that growth in the Eurozone is likely to remain weak for the rest of the year and that there are some indications of job growth slowing. However, Largarde added that while the short-term outlook remains subdued, the economy is set to strengthen again in the coming years as inflation drops further.

Technically, the EUR/USD pair maintains a bullish outlook as the major pair holds above the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. The upside momentum is supported by the Relative Strength Index (RSI) which stands in bullish territory above 50, indicating that further upside looks favorable.

The immediate resistance level for the major pair is located near the upper boundary of the Bollinger Band at 1.0972. The critical upside barrier to watch is a psychological round figure and a high of August 11 at 1.1000. A break above the latter will see the rally to a high of August 4 at 1.1042, followed by a high of July 27 at 1.1149.

On the downside, the 1.0890-1.0900 zone acts as an initial support level for the major pair. The mentioned level is the confluence of the lower limit of the Bollinger Band, a round mark, and the 50-hour EMA. Further south, the next contention level is a low of November 22 at 1.0852, and finally the 100-hour EMA at 1.0835. A breach of the latter will see a drop to a high of November 9 at 1.0725.

EUR/USD four-hour chart