EUR/USD Price Analysis: Posts modest gains above 1.0500, upside seems limited

• EUR/USD attracts some buyers above 1.0520 amid the softer USD.
• The pair holds below the 50- and 100-hour EMAs; RSI is located in the bearish territory under 50.
• The immediate resistance level is seen at 1.0558; 1.0477 acts as an initial support level.

The EUR/USD pair posts modest gains during the Asian session on Monday. The rebound of the pair is supported by the softer US Dollar (USD) broadly. EUR/USD currently trades near 1.0522, up 0.22% on the day.

According to the four-hour chart, the EUR/USD pair holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope, which means the path of least resistance for the pair is to the downside. Adding to this, the Relative Strength Index (RSI) is located in the bearish territory under 50, indicating further downside cannot be ruled out.

That being said, the immediate resistance level for EUR/USD is seen near the 50-hour EMA at 1.0558. The additional upside filter will emerge near the 100-hour EMA at 1.0578. Any follow-through buying above the latter will see a rally to the key barrier at 1.0600, portraying a psychological round figure and a high of October 6. Further north, the major pair will challenge the next hurdle at 1.0640 (a high of October 12), followed by 1.0655 (the upper boundary of Bollinger Band).

On the flip side, the lower limit of the Bollinger Band at 1.0477 acts as an initial support level for EUR/USD. The next contention to watch is near a low of October 4 at 1.0450. The next downside stop is located at the 1.0400-1.0405 zone, representing a psychological mark and a high of October 17. A decisive break below the latter will see a drop to 1.0330 (a low of November 16, 2022).

EUR/USD four-hour chart