Eurusd Sets Eyes On Resistance As Usd Slips

last updated on

Eurusd Sets Eyes On Resistance As Usd Slips

EUR/USD Sets Eyes On 1.0900 As US Dollar Slips

The recovery wave in the EUR/USD appears to be gaining steam during Friday's session. It appears that the Euro/Dollar pair is heading towards the 1.0900 resistance zone amid a fresh wave of selling seen in the greenback.

The US bond yields have declined, which has also led to a drop in the greenback against other currencies. In addition, the risk sentiment has also improved as of late, which also supports a bullish EUR/USD.

Looking ahead, US data is scheduled for next week, but it is mostly mid-tier, which means we can't really expect any major moves after the release.

EUR/USD Trades Above Major SMA Lines

On the EUR/USD D1 chart, the price action formed a lower low, only to turn green afterwards. Furthermore, the EUR/USD appears to be gaining ground above the main moving averages (MA) which is also a good sign.

If we look at the bigger SMA lines like the 100 & 200, they are lacking direction for now and are present near the 1.0790 - 1.0800. As for the shorter SMA (20), it is still below the bigger SMA lines.

The majority of the technical indicators which measure the momentum are also showing signs of stabilization. However, they are close to the overbought levels, which suggests that caution is needed.

For the short-term, experts believe that the EUR/USD direction is towards the north (upwards). And if we take a peek at the 4-hr chart, the indicators show a sign of recovery as they have already moved out of the overbought levels. According to some experts, this is a sign that buying interest is still present in the EUR/USD.

Once the EUR/USD crosses the 1.0890 level, the bullish interest will return once again and will send the pair towards the next resistance at 1.0900.

Meanwhile, the support levels to watch include 1.0840 and then 1.0800. If the bulls fail to defend these 2 levels, the next major support will be 1.0755.

On the top side, we have the 1.0890 followed by 1.0925 and then the 1.0960 level. Considering the short-term momentum, the EUR/USD has more chances to touch its resistance levels than the support levels.

Trending Stories