The EUR/USD currency pair continued its upward trajectory for the second consecutive session on Wednesday, edging closer to 1.0780 during Asian trading hours. Notably, the immediate obstacle is identified at the 23.6% Fibonacci retracement level of 1.0785.
A successful breach above this critical level is poised to provide further upward impetus, potentially propelling the EUR/USD pair towards the vicinity of the nine-day Exponential Moving Average (EMA) at 1.0798. This area coincides with the psychological barrier of 1.0800, serving as an additional resistance point. Subsequent resistance levels stand at 1.0850, with notable emphasis on the psychological threshold of 1.0900.
Technical analysis highlights a prevailing bearish sentiment for the EUR/USD pair. The 14-day Relative Strength Index (RSI) resides below the pivotal 50 mark, indicative of weakened buying momentum. Moreover, the Moving Average Convergence Divergence (MACD) portrays a divergence beneath the signal line, persistently positioned below the centerline. While acknowledging the lag inherent in this indicator, such alignment signifies a corroborated confirmation of the prevailing bearish momentum for the EUR/USD pair.
Conversely, on the downside, immediate support emerges at March’s low of 1.0767, with subsequent support found at the significant level of 1.0750. A breach beneath this threshold may potentially prompt a retest of the weekly low at 1.0724, with further downside pressure leading towards the psychological support level of 1.0700.
