EUR/USD Price Analysis: Eyes 1.0700 amid the risk-on mood

• EUR/USD is aiming to recapture the 1.0700 resistance amid an improvement in the risk-aversion theme.
• Weak retail demand is music to the ears of the ECB, which is putting efforts into achieving price stability.
• Upward-sloping 20-and 50-period EMAs at 1.0644 and 1.0662 respectively, add to the upside filters.

The EUR/USD pair is gathering strength to reclaim the round-level resistance of 1.0700 in the early Asian session. The Euro is getting significant bids amid improved risk appetite for the risk-perceived assets. The US Dollar is struggling for firm feet ahead of the Federal Reserve (Fed) chair Jerome Powell's testimony. Fed Powell might consider a ‘wait and watch’ approach before endorsing more rates as the street believes that February’s resilient consumer spending could be a ’one-time show’.

S&P500 settled Monday’s trading session with marginal gains, portraying mild optimism among the market participants.

On the economic front, Eurozone Retail Sales continued their annual contraction, landing at -2.3% while the street was expected an expansion by 1.9%. Monthly Retail Sales increased by 0.3% but remained well below the consensus of 1.0%. Weak retail demand is music to the ears of the European Central Bank (ECB), which is putting efforts into achieving price stability.

EUR/USD is approaching the supply zone placed in a range of 1.0698-1.0705 on an hourly scale. The major currency pair is expected to recapture the same considering the strength in the upside momentum.

Upward-sloping 20-and 50-period Exponential Moving Averages (EMAs) at 1.0644 and 1.0662 respectively, add to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating a continuation of upside momentum.

A fresh upside will be witnessed if the shared currency pair will deliver a break above the supply zone placed in a range of 1.0698-1.0705, which will drive the asset toward February 07 high at 1.0766 followed by February 14 high at 1.0805.

On the flip side, a downside break below March 03 low at 1.0612 will drag the asset toward March 1 low at 1.0577. A slippage below the latter will expose the major to more downside toward February 27 low at 1.0533.

EUR/USD hourly chart