Eurusd Trades Above Support With Bullish Sentiment

Eurusd Trades Above Support With Bullish Sentiment by Andrew Blumer last updated on December 01, 2023

EUR/USD Trades Above The 1.09 Support, Sentiment Remains Bullish

The EUR/USD's sentiment remains bullish during the Wednesday session, which appears to have stopped the corrective move from a day earlier. For now, the EUR/USD exchange rate is hovering around 1.0915 to 1.0920 but remains heavily dependent on the dynamics of the USD.

Although the EUR/USD has retreated in the last few days, the long-term trend still points to more upside. In addition, EUR/USD is also holding comfortably above the important Moving Averages on the D1 chart. Just like that, the RSI indicator is also slowly moving out of the overbought levels, which means the chances of another upside wave are very high.

EUR/USD Stays Supported Above 1.095

According to analysts, the EUR/USD will likely test the 1.10 resistance level as long as it manages to trade above the 1.095 support level.

The 4-hour chart of the EUR/USD also hints at a bullish side, along with a chance of a minor correction as well. The nearest support on the 4-hr chart is near 1.0885 and then 1.0830. So if the minor correction materializes, then the EUR/USD bulls may regroup at these 2 levels.

During Tuesday's session, the EUR/USD dropped lower on account of the FOMC minutes. But let's not forget that the pair managed to touch 1.0964 before that, which is a 3-month high. That's why it is safe to say that the decline in the EUR/USD can be viewed as a correction.

The recent data from the USA also showed that the Existing Home Sales in the USA declined during the month of October. Next up is the jobless claims, along with a few other key economic releases from the USA.

As far as the FOMC minutes are concerned, there was nothing new at all, as all of the Fed officials are still worried about inflation. At the same time, they hinted at more monetary tightening to bring down inflation.

Now that the FOMC is out of the way for the time being, the chances of a bullish EURO against the US Dollar have risen once again.