EURUSD is rising as the US Dollar falls due to increased risk appetite.
The EURUSD is up for the second day in a row, trading around 1.0980 during the Asian session on Thursday. The Euro pair gains as the US Dollar (USD) faces headwinds due to the risk-on market sentiment ahead of the US Consumer Price Index (CPI) data.
EURUSD Technical Outlook
A break above the 1.1000 barrier might send the pair back to the previous week’s high of 1.1038.
As the MACD indicates sluggish movement, the main support at 1.0950 could be retested.
The psychological barrier of 1.1000 may provide resistance to the EURUSD pair. If a breakthrough occurs above this threshold, it could potentially support The pair is expected to retest the previous week’s high of 1.1038. Notably, the EURUSD pair’s 14-day Relative Strength Index (RSI) has returned above 50, indicating a strong market trend.
However, although being above the centerline, the Moving Average Convergence Divergence (MACD) line is still below the signal line. This points to a lack of momentum in the EURUSD pair. Given the lagging indicator’s contradictory indications, traders should take care and wait for confirmation before making choices in the pair.
On the downside, the EURUSD pair may reach the psychological level of 1.0900 before returning to the immediate support at the significant level of 1.0950. A definitive break of the latter might increase negative pressure on the pair, potentially driving it to the downside. It is heading towards the 50-day EMA at 1.0888 and the 38.2% Fibonacci retracement line at 1.0867. A further fall could result in a key support level at 1.0850.
