Eurusd Defensive In Short Term

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Eurusd Defensive In Short Term

Eur/Usd Defensive Under 1.0900 Resistance

EUR/USD appears to be on the defensive under the 1.0900 resistance level on Tuesday. The current market mood favors the USD, and thus, there's a renewed demand for the greenback. This sentiment has put the EUR/USD under pressure as it trades just below an important resistance level.

Later today, Germany's ZEW survey will be released, which will have some mild implications for the EUR/USD pair. Next up is the US retail sales data, which can impact the US Dollar and, thus, the EUR/USD pair.

Eur/Usd Faces Next Resistance At 1.0922

According to analysts, the next hurdle for the EUR/USD is around 1.0922, which is also the top from 15th July. Once this level is cleared, the next target will be 1.0981, and then the round number at 1.1000.

If the bears take control of the EUR/USD, it will bring the attention back to the 1.0805 support where the 200 SMA is present. A successful break of the 200 SMA will turn it into a dynamic resistance and bring the next level at 1.0666 into focus.

From here, the next key support levels for the EUR/USD include the 1.0650, 1.0600, and then the 1.0590. But if we look at the bigger picture, the bulls will continue to push the pair higher as long as the 200 SMA remains intact.

If we move down to the H4 chart, an increase in the EUR buying momentum is seen, similar to the bigger timeframes. On the H4 chart, the first resistance is at 1.0922, followed by 1.0981 and then 1.0990. Conversely, the first support is at 1.0832, where the 55 SMA is present, followed by the 200 SMA near 1.0786.

For the time being, the USD is showing modest demand as investors are optimistic about the start of the new trading week. Meanwhile, the DXY is trading in the lower region of 104.00, and the momentum is still pretty weak. Once the key data from Germany and the USA is released, the next trend of EUR/USD will emerge.

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