Eurusd Revisits Support

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Eurusd Revisits Support

Eur/Usd Revisits 1.0970 After Us Services Pmi Release

EUR/USD is experiencing selling pressure after a mild rebound in the US Dollar. The USD has gained strength after the release of a strong US Services PMI, sending the EUR/USD lower below the 1.1000 handle.

Right now, EUR/USD is trading just near the 1.0970 handle, with the 1.1000 now serving as the key resistance that could block any bullish advances.

Eur/Usd Highly Likely To Target 1.1000 Again

On the D1 chart, EUR/USD is developing above all the main moving averages. Especially, the 20 SMA is above the longer ones and is showing an upward slope but is still 100 pips below the recent trading price.

The technical indicators are also printing in the positive territory and are not showing any signs of exhaustion yet. So, this mild selling in the EUR/USD appears to be short-lived and is driven by the mild demand for the greenback.

The H4 chart shows that the bullish momentum is still strong in the short term. Although the technical indicators have reached their extreme (overbought) levels, the positive sentiment is expected to stay for now.

The currency technical setup shows that the EUR/USD pair is all ready to cross the 1.1000 handle once again in the next few days. On the way down, the important levels to watch are 1.0960 and then 1.0915. If the 1.0915 is lost to the Dollar bulls, the next support will be 1.0875.

On the way up, the important levels to watch are 1.1005 and then 1.1040. Beyond these two, the next bullish target for the EUR/USD traders will be around 1.1085.

Although the EUR/USD had a chaotic start to the week, the 1.1000 level is still on the cards. The market is now concerned about the health of the US economy as many experts are forecasting a recession in the next few months.

In fact, many believe that the US Federal Reserve might be forced to deliver a rate cut out of schedule. The timing of this rate cut could be as early as next week.

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