EURUSD gets traction for two days in a row amid USD weakening.
The immediate resistance level for EURUSD is 1.0543, while the initial support level is 1.0488.
During the early European session on Thursday, the EURUSD pair gains traction. Market participants are looking forward to the German Trade Balance for August, which is predicted to fall to €15 billion from the previous estimate of €15.9 billion. The main currency is presently trading around 1.0525, up 0.20% on the day.
EURUSD Technical Outlook
The EURUSD pair is trading below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward trend on the four-hour chart. This means that the pair’s path of least resistance is to the downside. However, the Relative Strength Index (RSI) is in the 40-60 range, indicating that the main pair is moving in a non-directional manner.
However, the immediate resistance level for EURUSD is at the 50-hour EMA at 1.0543. The second upside filter will appear at the upper Bollinger Band border at 1.0565. Any subsequent purchasing over the latter will result in a rally to 1.0600, which represents the convergence of the 100-hour EMA and a psychological round point. Further north, the cross will face the next barrier at 1.0635 (a September 14 low), then 1.0670 (a September 22 high), and ultimately 1.0700, a psychological figure.
On the negative side, The EURUSD initial support level is indicated at a low of 1.0488 on September 27. The next point to watch is at the October 3 low of 1.0448. The next downward stop is around 1.0433 (the Bollinger Band’s lower limit). A significant breach below the latter will result in a decline below 1.0400.
