EURUSD recovered to 1.0625 in Wednesday’s early European session.
The EURUSD pair rises somewhat around 1.0625 after rebounding from a new yearly low of 1.0600 on Wednesday during early European trading hours. However, further gains may be limited given hawkish comments from Federal Reserve (Fed) Chairman Jerome Powell. And growing anticipation that the European Central Bank (ECB) would begin cutting interest rates in June. Investors wait for the Eurozone Harmonized Index of Consumer Prices.
(HICP) for March and ECB President Lagarde’s speech for new triggers.
EURUSD Technical Outlook
The pair has a negative outlook below the critical EMA. The RSI indicator remains in bearish zone.
The initial support level is projected at 1.0600-1.0605. While the immediate resistance level will appear at 1.0710.
Technically, EURUSD remains bearish, with the major pair below the crucial 100-period Exponential Moving Average (EMA) on the four-hour chart. The negative momentum is supported by the Relative Strength Index (RSI). Which is currently in bearish territory around 32, indicating that more drop appears promising.
The 1.0600-1.0605 zone serves as an early support level for the major pair. Representing the intersection of the Bollinger Band’s lower limit and the psychological level. Further south, the next level of contention to monitor is November 2’s low of 1.0565. Followed by the round mark of 1.0500.
On the upside, EURUSD’s initial resistance level will be at the 50-period EMA of 1.0710.
The 100-period EMA around 1.0756 is another positive indicator to keep an eye on. A convincing break above this level will expose a low of March 22 and the round figure at 1.0800. On the way to a high of April 9 at 1.0885.
