EUR/USD Price Analysis: Edges lower to near 1.0910, MACD suggests trend change to bearish

• EUR/USD retraces its recent gains as the US Dollar gains ground on risk aversion.
• MACD indicates a momentum shift towards a bearish sentiment in the pair.
• The psychological level at 1.0900 and the 50-day EMA at 1.0897 could act as a potential support region.

EUR/USD trades lower near 1.0910 during the Asian session on Tuesday as US Dollar (USD) gains ground on risk aversion sentiment and upbeat US bond yields. The 14-day Relative Strength Index (RSI) for the EUR/USD pair is positioned below the 50 mark, indicating a bearish momentum in the market.

The Moving Average Convergence Divergence (MACD) line, despite being situated above the centerline, is diverging below the signal line. This suggests a potential shift in momentum towards a downward trend for the EUR/USD pair. Traders are expected to approach the situation with caution and may prefer to await confirmation before making trading decisions in the pair. It is important to consider the signals provided by this lagging indicator when assessing the market conditions.

The psychological level at 1.0900 could act as an immediate support aligned with the 50-day Exponential Moving Average (EMA) at 1.0897. A break below the support zone could put pressure on the EUR/USD pair to navigate the further region around the 38.2% Fibonacci retracement at 1.0867 level followed by the major support at 1.0850 level.

On the upside, the major level at 1.0950 appears to be the key resistance. A breakthrough above the latter could inspire the EUR/USD pair’s bulls to explore the region around the psychological level at 1.1000 followed by January’s high at 1.1038.

EUR/USD: Daily Chart