During the early European session on Tuesday, the EUR/USD pair experienced a lack of momentum for the fourth consecutive day, primarily driven by the recovering US Dollar (USD). As of the latest update, EUR/USD is trading at 1.1028, reflecting a 0.07% decrease for the day.
From a technical perspective, the negative outlook for EUR/USD remains unchanged on the four-hour chart, with the pair staying below the crucial 100-hour Exponential Moving Averages (EMA). The 14-day Relative Strength Index (RSI) is positioned in bearish territory below the 50 midline, suggesting the potential for further decline.
Key support levels to monitor include the confluence of the lower limit of the Bollinger Band and the psychological round mark at 1.1000. Subsequently, the 100-hour EMA at 1.0973 serves as another critical support level. If the downtrend continues, additional support is identified at 1.0929 (Low of December 20) and 1.0888 (Low of December 15).
On the upside, immediate resistance is noted at the high of December 29, standing at 1.1080. Further obstacles include the psychological round mark at 1.1100 and 1.1139 (High of December 28). In the event of a sustained upward movement, the next significant resistance level to watch is 1.1240 (High of July 19).
