EURUSD exchange rate is capped below the 1.0600 barrier.

EURUSD first support level is observed at 1.0566. And a significant resistance level is situated in the 1.0600–1.0610 region.

The 40–60 range of the Relative Strength Index (RSI) indicates a lack of direction.

A two-day winning streak is ended by the EURUSD pair on Monday. During the early European session. There won’t be a rate change anticipated when market participants. Await the European Central Bank’s (ECB) Interest Rate Decision on Thursday.

The markets believe the ECB’s cycle of rate hikes is ending. But since the fight against high inflation is still ongoing. It won’t start to taper off until at least July 2024. With a daily loss of 0.15%, the major pair is currently trading at 1.0577.

EURUSD Technical Outlook

Technically speaking, the EURUSD pair follows the four-hour chart’s range-bound theme. The long-term average is above the short-term average, suggesting that further upside is likely. The major pair continues to hold above the 50- and 100-hour Exponential Moving Averages (EMAs).

For the main pair, the 1.0600–1.0610 area serves as a crucial resistance level. The level in question is the intersection of the psychological round figure, the upper bound of the Bollinger Band, and the high of October 20. Should the latter be decisively broken above, a rally to the next barrier at 1.0635 (the high of October 11) is anticipated. The other upside filter to keep an eye on is 1.0671 (the peak on September 22), followed byat a peak of 1.0735 on September 20.

Furthermore The initial support level for the EURUSD pair is located near the 50-hour EMA at 1.0566 on the downside. At 1.0525, which represents a low of October 18 and the lower bound of the Bollinger Band, the crucial argument will surface.

The next downside target will be a round figure at 1.0500 further south. If the latter is broken, there will be a decline to 1.0450, the low from October 4.

Moreover Relative Strength Index (RSI) indicates a non-directional movement in the pair because it is situated in the 40–60 zone.