EURUSD persists ahead of the PMI for the Eurozone.
The EURUSD 38.2% Fibonacci retracement raises. The major level at 1.0700 to the forefront of the resistance hierarchy.
For the fourth day in a row, the EURUSD pair is rising. On Tuesday during the Asian session, it was trading above the 1.0680 mark. The pair faces difficulties as a result of the US Dollar’s (USD) decrease. As well as an improvement in risk appetite due to Middle East geopolitical tensions.
Investors are awaiting the preliminary October PMI for the Eurozone. PMI data and the German GfK Consumer Confidence Survey are also on the agenda in Germany. On Tuesday, there will be a speech by Christine Lagarde, president of the ECB. There is no expectation of an interest rate change for the ECB’s scheduled monetary policy meeting on Thursday.
EURUSD Technical Outlook
The important resistance appears to be the major level at 1.0700. If the latter is broken, the EURUSD pair may investigate the area around the psychological level of 1.0750. And then move on to the 38.2% Fibonacci retracement at 1.0764.
The EURUSD pair may encounter resistance at 1.0600, which is aligned with the 14-day Exponential Moving Average (EMA) at 1.0596, if the market moves lower.
The EURUSD short-term average is below the long-term average, as indicated by the Moving Average Convergence Divergence (MACD) line, which is located below the centerline. But as the line diverges above the signal line, indicating an intriguing development, at a possible change in direction that could lead to a bullish trend.
As evidenced by a stronger bias in the 14-day Relative Strength Index (RSI) holding above the 50 level, the EURUSD pair suggests bullish momentum.
