EUR/USD Price Analysis: Hovers above 1.0900 followed by the 23.6% Fibonacci level
22.01.2024, 04:49

EUR/USD Price Analysis: Hovers above 1.0900 followed by the 23.6% Fibonacci level

  • EUR/USD could find immediate resistance at 23.6% Fibonacci retracement level at 1.0913.
  • A breakthrough above the 14-day EMA at 1.0922 could lead the pair to reach the major level at 1.0950.
  • A break below the psychological level at 1.0900 could push the pair to revisit the monthly low at 1.0884.

EUR/USD extends its gains on the second successive day, trading around 1.0910 during the Asian hours on Monday. The EUR/USD pair receives upward support on an improved risk appetite sentiment ahead of the European Central Bank's (ECB) January monetary policy meeting scheduled to be released on Thursday.

The 23.6% Fibonacci retracement level at 1.0913 acts as an immediate barrier followed by the 14-day Exponential Moving Average (EMA) at 1.0922. If the EUR/USD pair surpasses the latter, it could approach the major level at 1.0950 followed by the 38.2% Fibonacci retracement level at 1.0957.

The 14-day Relative Strength Index (RSI), which serves as a momentum oscillator measuring the speed and change of price movements, is positioned below the 50 mark, suggesting a tendency towards bearish sentiment in the market.

Additionally, the trend-following momentum indicator suggests a confirmation of the bearish trend in the EUR/USD pair as the “Moving Average Convergence Divergence (MACD)” line lies below the centreline and shows a divergence below the signal line.

The EUR/USD pair faces immediate support at the psychological level of 1.0900. A firm collapse below the level could lead the pair to navigate the monthly low at 1.0884 followed by the major support at 1.0850 level.

EUR/USD: Daily Chart

 

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