- EUR/USD could retest resistance around the 50-day EMA at 1.0834 and the weekly high at 1.0838.
- Technical indicators suggest a possible transition towards upward momentum.
- The key support region appears around the psychological level of 1.0800 and the 14-day EMA at 1.0795.
EUR/USD extends its winning streak initiated on February 14, with the US Dollar (USD) facing downward pressure due to concerns raised over potential interest rate cuts in the Federal Reserve Meeting Minutes published on Wednesday. As a result, the pair edges higher to around 1.0820 during the Asian session on Thursday.
The EUR/USD pair may ascend toward testing the nearby resistance area, which includes the 50-day Exponential Moving Average (EMA) at 1.0834 and the weekly high at 1.0838. If the pair manages to break above this zone, it could receive further upward momentum, potentially reaching the significant support level at 1.0850, followed by the 38.2% Fibonacci retracement level at 1.0864.
The technical analysis of the EUR/USD pair suggests a possible transition towards upward momentum. The 14-day Relative Strength Index (RSI) is positioned above the 50 mark, indicating a bullish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) is situated below the centerline but exhibits a divergence above the signal line. These indicators collectively suggest a potential bullish shift in momentum for the EUR/USD pair.
On the downside, immediate support is evident at the psychological level of 1.0800, coinciding with the 14-day Exponential Moving Average (EMA) at 1.0795. A breach below this EMA could lead the EUR/USD pair to revisit the weekly low around 1.0761, potentially targeting the major support zone near the 1.0750 level, with a possible objective of approaching the psychological support at 1.0700.
