EUR/USD Price Analysis: Remains in defensive mode above the 1.0900 area, Eurozone GDP eyed

• EUR/USD struggles to gain and holds ground above 1.0900 ahead of the key Eurozone data.
• EUR/USD holds below the 50- and 100-day Exponential Moving Averages (EMAs).
• The key resistance level to watch appears at 1.0940; the critical support level is located in the 1.0890–1.0900 zone.

The EUR/USD pair trades on a defensive note around the 1.0915 mark heading into the early European session on Wednesday. Market players await the Eurozone Gross Domestic Product (GDP) Q2 and Harmonized Index of Consumer Prices (HICP) for July, due later this week. The Eurozone growth number are expected to remain at 0.3% and 0.6% on a quarterly and yearly basis, respectively. While the Eurozone HICP MoM is expected to stay at -0.1%.

From the technical perspective, EUR/USD holds below the 50- and 100-day Exponential Moving Averages (EMAs), implying the path of least resistance for the EUR/USD is to the downside. That said, the Relative Strength Index (RSI) stands around 50, supporting the directionless movement for the major pair.

The key resistance level to watch for EUR/USD appears at 1.0940, representing the upper boundary of the Bollinger Band and the 100-hour EMA. Any meaningful follow-through buying beyond the latter could pave the way to the next barrier at 1.0980 (low of August 10) en route to 1.1000 (a psychological round mark, high of August 11). The additional upside filter is located at 1.1065 (high of August 11).

On the flip side, EUR/USD will meet the critical support level in the 1.0890–1.0900 zone, portraying a low of August 15 and a lower limit of the Bollinger Band. A decisive break below the latter would fuel a drop towards 1.0875 (low of August 14), followed by 1.0845 (low of June 23), and finally at 1.0830 (low of July 6).

EUR/USD one-hour chart