Global Forex Market, February 20, 2024 – The EUR/USD pair retreated from its weekly high of 1.0789, marking the end of a four-day winning streak. As of the Asian trading hours on Tuesday, the pair hovers around 1.0770, maintaining a position just above the critical support level at 1.0750.
The potential breach of this immediate support at 1.0750 could expose the EUR/USD pair to additional downward pressure, with the next support region lying near the psychological level of 1.0700. This area aligns with February’s low of 1.0694, observed on February 14.
Conversely, the pair faces a key resistance zone around the 21-day Exponential Moving Average (EMA) at 1.0798, accompanied by the 23.6% Fibonacci retracement level at 1.0799 and the psychological barrier at 1.0800.
A decisive breakthrough above this resistance zone may provide upward momentum for the EUR/USD pair, potentially leading to a test of the major barrier at 1.0850. Further upside could see a revisit of February’s high at 1.0897, aligning with the psychological level of 1.0900.
The technical analysis of the EUR/USD pair presents a mixed outlook. The 14-day Relative Strength Index (RSI) is currently below the 50 mark, indicating a bearish momentum. In contrast, the lagging indicator Moving Average Convergence Divergence (MACD), while still positioned below the centerline, remains above the signal line, suggesting a subdued market momentum.
In light of these conflicting signals, market participants may exercise caution and await further confirmation from the MACD indicator to ascertain the directional trend for the EUR/USD pair. The ongoing dynamics in the forex market emphasize the importance of vigilance as traders navigate the evolving landscape.
