The EUR/USD pair is in consolidation mode after registering losses in the previous session, trading near 1.0930 during the Asian session on Wednesday. As the pair contends with the psychological resistance area at 1.1000, it could encounter a notable barrier at the major level of 1.0950.
A successful breakthrough above the psychological level of 1.1000 may propel the EUR/USD pair to revisit the previous week’s high at the 1.1038 level. However, caution is warranted as the 14-day Relative Strength Index (RSI) has dipped below the 50 mark, signaling a bearish momentum.
Moreover, the Moving Average Convergence Divergence (MACD) line, while still positioned above the centerline, is exhibiting divergence below the signal line. This suggests a potential shift toward a downward trend, prompting traders to exercise caution and await confirmation before making decisions in the pair.
On the downside, the EUR/USD pair could find immediate support at the psychological level of 1.0900. A decisive breach of this level might exert downward pressure on the pair, potentially leading it toward the 50-day Exponential Moving Average (EMA) at 1.0888. Further support levels include the 38.2% Fibonacci retracement level at 1.0867 and a significant support zone at 1.0850. Traders are advised to closely monitor these levels for potential price movements in the EUR/USD pair.
