Hovers around 1.0830 after paring intraday gains

  • EUR/USD could find immediate resistance around the major level at 1.0850.
  • Technical analysis suggests that the pair could move toward psychological support at 1.0800.
  • The break above the 14-day EMA at 1.0877 could lead the pair to approach the psychological barrier at 1.0900.

EUR/USD hovers around 1.0830 during the Asian session on Tuesday after trimming its intraday gains. The EUR/USD pair grapples to recover the losses registered in the previous session. The significant level at 1.0850 may act as immediate resistance for the EUR/USD pair.

A successful breakthrough above the latter could potentially propel the pair toward the 23.6% Fibonacci retracement level at 1.0889, followed by the 14-day Exponential Moving Average (EMA) at 1.0877. A breakthrough above the resistance zone could propel the EUR/USD pair to explore the region around the psychological barrier at 1.0900 level.

The 14-day Relative Strength Index (RSI) for the EUR/USD pair is situated below the 50 mark, signaling a bearish momentum in the market. In addition, the Moving Average Convergence Divergence (MACD), which is a lagging indicator, suggests a potential confirmation of a downward trend. This is indicated by the MACD line being positioned below the centerline and the signal line.

The EUR/USD pair could find immediate support at the psychological level at 1.0800 aligned with the monthly low at 1.0795. A decisive break below the monthly low could strengthen the bearish sentiment to navigate the region around the major support at the 1.0750 level.

EUR/USD: Daily Chart