- EUR/USD could test the psychological resistance level of 1.0800.
- Technical analysis suggests a potential shift towards upside momentum.
- The pair could find the support region around the major level of 1.0750 and the previous week’s low at 1.0722.
EUR/USD extends its winning streak for the fifth consecutive session on Monday, moving upward near the 1.0790 level during the Asian session. The key resistance at the psychological level of 1.0800 is closely watched, followed by the 14-day Exponential Moving Average (EMA) at 1.0810.
A firm break above the EMA could intensify upward momentum for the EUR/USD pair, targeting the 23.6% Fibonacci retracement level at 1.0821, along with the significant barrier at 1.0850. Further upside could see the pair navigate towards the region around the psychological level at 1.0900.
Technical analysis of the EUR/USD pair indicates a mixed outlook in the market. The 14-day Relative Strength Index (RSI) is below the 50 mark, indicating a bearish momentum. However, the lagging indicator Moving Average Convergence Divergence (MACD), while still below the centerline, shows signs of convergence below the signal line, suggesting a potential shift towards upside momentum.
Given these conflicting signals, market participants may opt to await further confirmation of the directional trend for the EUR/USD pair before making trading decisions.
On the downside, the EUR/USD pair has immediate support at the psychological level of 1.0750, with further support at the previous week’s low of 1.0722, observed on February 6. A clear breach below this level may exert downward pressure on the pair, potentially leading it towards the psychological support level of 1.0700. Traders will closely monitor price action around these levels for potential shifts in market sentiment.
EUR/USD: Daily Chart
