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EUR/USD Price Analysis: The key support level is seen around 1.0730, oversold RSI condition eyed

  • EUR/USD attracts some sellers near 1.0745 on the firmer USD on Thursday. 
  • The pair resumes its bearish stance below the key EMA, with an oversold RSI condition.
  • The key support level is seen at the 1.0725–1.0730 zone; the first upside target is located at 1.0800.

The EUR/USD pair loses traction around 1.0745 on Thursday during the early European session. The hotter-than-expected US inflation data boosted the Greenback to yearly highs and exerted some selling pressure on the EUR/USD pair. The European Central Bank (ECB) interest rate decision will be the highlight later on Thursday, which is expected to leave interest rates steady at a record high.  

From a technical perspective, EUR/USD resumes its bearish outlook as the major pair is below the key 100-period Exponential Moving Average (EMA) on the four-hour chart. The downward momentum is confirmed by the Relative Strength Index (RSI), which holds in bearish territory below 50. Nonetheless, the oversold RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/USD depreciation.

The confluence of the lower limit of the Bollinger Band and a low of October 10 at the 1.0725–1.0730 region acts as a crucial support level for EUR/USD, Any follow-through selling will see a drop to the 1.0700 psychological level. The additional downside filter to watch is a low of November 9, 2023 at 1.0660, followed by a low of November 3, 2023 at 1.0615.

On the upside, the first upside barrier will emerge near a low of March 22 and the round figure at 1.0800. Further north, the next target is seen around the 100-period EMA at 1.0825. A break above the latter will pave the way to a high of April 9 at 1.0885, en route to the upper boundary of the Bollinger Band at 1.0920. 

EUR/USD four-hour chart

EUR/USD

Overview
Today last price1.0744
Today Daily Change0.0002
Today Daily Change %0.02
Today daily open1.0742
 
Trends
Daily SMA201.0833
Daily SMA501.0829
Daily SMA1001.0872
Daily SMA2001.0832
 
Levels
Previous Daily High1.0867
Previous Daily Low1.0729
Previous Weekly High1.0876
Previous Weekly Low1.0725
Previous Monthly High1.0981
Previous Monthly Low1.0768
Daily Fibonacci 38.2%1.0782
Daily Fibonacci 61.8%1.0814
Daily Pivot Point S11.0692
Daily Pivot Point S21.0642
Daily Pivot Point S31.0554
Daily Pivot Point R11.083
Daily Pivot Point R21.0917
Daily Pivot Point R31.0967

Author

Lallalit Srijandorn

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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