EUR/USD Price Analysis: Eyes a sustained move above 1.1050 amid Russia-Ukraine optimism

• EUR/USD cheers renewed optimism over the Russia-Ukraine war.
• Risk-on mood weighs negatively on the safe-haven US dollar.
• EUR bulls need to recapture 100-SMA on the 4H chart for further upside.

EUR/USD is heading back towards the weekly highs of 1.1053, as the US dollar comes under fresh selling pressure amid a renewed risk-on wave.

The market sentiment received a fresh boost after the UK military intelligence sources reportedly said that the Russian invasion of Ukraine has largely stalled on all fronts.

The greenback also remains pressured by the falling Treasury yields, despite the Fed’s hawkish pivot, suggesting six more rate hikes this year. The Fed outcome indicated that the world’s most powerful central bank remains on track to curb inflation even though the world battles uncertainty due to the Russia-Ukraine war.

The geopolitical developments will continue to impact the market’s risk perception ahead of the second-tier US economic releases due later on Thursday.

EUR/USD: Technical outlook

As observed on the four-hour chart, EUR/USD is challenging the downward-sloping 100-Simple Moving Average (SMA) at 1.1052.

A sustained break above the latter is needed to extend the recovery momentum towards the 1.1100 round level.

The Relative Strength Index (RSI) is inching slightly higher above the midline, justifying the renewed uptick in the price.

If bulls manage to extend their control, then the main currency pair could move further to retest the March 10 high of 1.1121.

EUR/USD: Four-hour chart

On the other side, strong support is seen around 1.0970, where the 21 and 50-SMAs align.

Bears could accelerate the pullback towards the previous day’s low of 1.0949 should the abovementioned support give way.

The last line of defense for buyers is seen at 1.0900, the psychological level.

EUR/USD: Additional levels to consider