The EUR/USD pair regained upward momentum during Tuesday’s Asian session, bouncing back from a two-day losing streak and halting its recent retreat from a multi-month high touched last week. The recovery lifted the pair to a fresh daily high near the 1.0975 level, fueled by renewed selling pressure on the U.S. Dollar (USD).
The Greenback’s weakness, amid growing expectations of Federal Reserve rate cuts, provided fresh impetus to the common currency. The resulting shift in sentiment has allowed the EUR/USD pair to reestablish a positive footing, following a period of consolidation.
Technical Outlook
From a technical standpoint, the pair displayed resilience near the 200-hour Exponential Moving Average (EMA) on Monday, a development that bolstered the case for bullish continuation. Additionally, momentum indicators on both daily and hourly charts remain in positive territory, reinforcing the near-term bullish bias.
However, a sustained break above the short-term descending trendline resistance—currently around the key psychological level of 1.1000—is needed to confirm further upside. A decisive breach of this barrier could open the door for a rally toward the recent swing high around 1.1050, followed by the 1.1100 level and potentially the year-to-date peak near 1.1145.
On the downside, initial support is seen near the 1.0940 zone, ahead of the 100-hour EMA positioned around the 1.0900 level. This round figure acts as a crucial pivot for short-term traders. A break below could trigger a deeper pullback toward the 1.0845 intermediate support, with further downside targets at 1.0800 and the key 1.0735–1.0730 area—coinciding with the 200-day Simple Moving Average (SMA).
A decisive move below the 200-day SMA would signal a near-term top and potentially set the stage for a broader corrective decline.
As traders await fresh U.S. economic data and central bank cues, price action around the 1.1000 mark will remain a critical focal point.
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