EUR/USD Price Analysis: Depreciates to near 1.0830 followed by 21-day EMA
29.02.2024, 03:39

EUR/USD Price Analysis: Depreciates to near 1.0830 followed by 21-day EMA

  • EUR/USD could find immediate support around 21-day EMA at 1.0818 and psychological support of 1.0800 level.
  • The immediate resistance appears around the major level of 1.0850 followed by the 38.2% Fibonacci retracement level of 1.0864.
  • The technical analysis suggests a potential shift towards bullish momentum for the pair.

EUR/USD continues its losing streak for the third successive session as traders exercise caution ahead of the release of key US Personal Consumption Expenditures - Price Index data, which could potentially influence the Federal Reserve's monetary policy stance. The pair edges lower to near 1.0830 during the Asian trading hours on Thursday.

The EUR/USD pair could find the immediate support zone around the 21-day Exponential Moving Average (EMA) at 1.0818 followed by the psychological support of 1.0800 level.

A break below this support zone could prompt the EUR/USD pair to target the further the major level of 1.750 with an aim to navigate the region around the psychological level of 1.0700 aligned with February’s low at 1.0694 level.

Technical analysis indicates a bullish sentiment for the EUR/USD pair. The 14-day Relative Strength Index (RSI) is positioned above the 50 mark, signaling strength in the upward momentum.

Moreover, the Moving Average Convergence Divergence (MACD) exhibits a divergence above the signal line, although it remains below the centerline. While a lagging indicator, this suggests a potential transition towards bullish momentum for the EUR/USD pair.

On the upside, the immediate resistance levels for the EUR/USD pair are identified at the major level of 1.0850 followed by the 38.2% Fibonacci retracement level of 1.0864.

A breakthrough above the latter could exert upward support for the pair to retest the psychological resistance area around February's high of 1.0897 and the psychological barrier at 1.0900.

EUR/USD: Daily Chart

 

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