Eurusd Trades Below Resistance

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Eurusd Trades Below Resistance

Eur/Usd Trades Below 1.0800, Key Events Ahead

The EUR/USD pair is showing consolidation below the 1.0800 resistance zone as Tuesday's session unfolds. A day earlier, the EUR/USD closed in green, which raises the question of why the pair was under pressure on Tuesday.

It has to do with the upcoming data releases such as the US CPI, Powell's Speech, and Germany's ZEW sentiment data. All of these data releases can have serious implications for the EUR/USD, which is the reason why the pair is in a consolidation phase.

Eur/Usd Faces Resistance At 1.0827

On the topside, 1.0812 serves as the first resistance for the EUR/USD, followed by 1.0827, where the 100 SMA is located. Next up is the 1.0885, which is also the high from 9th April.

Any further upside will open the doors to the 1.0981, which is the peak from 8th March, followed by the 1.0998 level. Beyond all of that is the 1.100, which is a key psychological and technical resistance.

On the downside, the 1.0649 remains relevant as support, followed by the 1.0601 handle, where the bottom of the year 2024 is located. If both of these support levels are breached, the EUR/USD will move down to 1.0495 and then the 1.0448 handle.

On the EUR/USD 4-hr chart, the nearest resistance is seen at 1.0812 and then 1.0885. So, in that sense, the EUR/USD pair also faces some tough obstacles before it can move higher towards the 1.0900 handle.

The one key positive theme for the EUR/USD is the 200 SMA, which is present at 1.0737, below the current trading price.

According to experts, a return of selling pressure on the greenback will be welcomed by the EUR/USD bulls and will open the doors to the 1.0800 handle.

According to the CME FedWatch Tool, the chances of a September rate cut are now standing at 65%. So, if we get any confirmation of a rate cut at the September meeting, it will also spark buying in the EUR/USD pair.

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