EUR/USD Price Analysis: Hovers above 1.0550 major level, MACD suggests momentum shift

• EUR/USD moves lower near 1.0550 due to recovery in the US Dollar.
• MACD indicates a change in momentum and a possible shift towards a bullish trend.
• The major level at 1.0500 could act as the support, following the previous week’s low at 1.0448.

EUR/USD extends losses on the second day, trading lower around 1.0560 aligned with the immediate support at 1.0550 psychological level during the Asian session on Tuesday. However, the pair received upward support due to the continued correction in the US Dollar (USD).

A decisive break below the level could contribute to pressure on the pair to navigate the area around the major level at 1.0500, following the next level at 1.0450 lined with the previous week’s low at 1.0448.

On the upside, the EUR/USD pair could face resistance near the major level at 1.0600 lined up with the 21-day Exponential Moving Average (EMA) at 1.0605.

A firm break above the latter could open the doors for the pair to explore the region around 23.6% Fibonacci retracement at 1.0643, aligned with the psychological level at 1.0650.

The Moving Average Convergence Divergence (MACD) line lies below the centerline, which suggests that the short-term average is below the long-term average. Yet, the line is diverging above the signal line, it implies a change in momentum and a possible shift towards a bullish trend.

However, the prevailing bullish momentum in the EUR/USD pair indicates a bearish bias, as the 14-day Relative Strength Index (RSI) remains below the 50 level.

EUR/USD: Daily Chart