EURUSD continues to rise above 1.0950, gaining 0.18% on the day.
During the early European session on Tuesday, the EURUSD pair is trading in positive territory for the fourth straight day. The weaker US dollar and lower US Treasury bond yields help the EURUSD.
On Tuesday, investors will take more cues from the Federal Open Market Committee (FOMC) Meeting Minutes, which may provide insight into the trajectory of future policy rates.
EURUSD Technical Outlook
The four-hour chart indicates a bullish potential. The EURUSD is still trading above the 50- and 100-hour Exponential Moving Averages (EMA). It’s worth mentioning that the Relative Strength Index (RSI) is currently over 50, indicating a bullish trend. The overbought RSI condition, on the other hand, suggests that additional consolidation cannot be ruled out before positioning for any near-term EURUSD rise.
Having said that, the immediate resistance level for EURUSD is at 1.0978, near the upper boundary of the Bollinger Band. The important upside hurdle is approaching a psychological round figure and the August 11 high of 1.1000. Any follow-through buying will result in a rise to a high of 1.1042 on August 4, en route to a high of 1.1149 on July 27.
On the negative side, the 1.0895-1.0900 range is active. as an early support level for the major pair. The cited level is the intersection of the psychological mark and the November 16 high. The next conflict level will develop further south, at the lower boundary of the Bollinger Band at 1.0817. A break below the latter will result in a decline to the 50-hour EMA at 1.0759, followed by a high of 1.0725 on November 9.
