EURUSD could approach the 21-day EMA of 1.0727.
EURUSD (Euro) recovers its recent losses posted in the previous session, trading around 1.0710 during the Asian session on Thursday.
Technical Outlook
EURUSD a break below 1.0700 might take the pair to the main support of 1.0650 and April’s low of 1.0601.
Moreover A break over the important mark of 1.0695 indicates a softening of bearish sentiment from a technical aspect. Data reveals a softening of bearish sentiment for the pair as it has surpassed. The significant level of 1.0695 and the psychological level of 1.0700. Furthermore, the lagging indicator Moving Average Convergence Divergence (MACD) indicates a shift in momentum for the EURUSD pair. Which is positioned below the centerline. But above the signal line. However, the 14-day Relative Strength Index (RSI) remains below 50. Indicating that the negative momentum will continue
Key support for the EURUSD pair is anticipated to be located around the psychological level of 1.0700. A breach below this level might put negative pressure on the pair. Potentially bringing it to the area around the main support level of 1.0650. Further support may be detected around April’s low at 1.0601. Which correlates with the psychological threshold of 1.0600.
Moreover on the upside, the pair’s immediate resistance might be the 21-day Exponential Moving Average (EMA) at 1.0727. A breakthrough over this level might send the pair towards the 38.2% Fibonacci retracement level at 1.0749. Which is drawn between the levels of 1.0981 and 1.0606, coinciding with the significant level of 1.0750.
