EURUSD may test the immediate resistance of the 1.0950 level.
EURUSD moves sideways against a stable US Dollar (USD). During Asian trading hours on Monday, the pair hovered around 1.0940, with an immediate resistance barrier at 1.0950 and an eight-week high of 1.0981 set in the previous session.Following the positive US Nonfarm Payrolls report released on Friday,
EURUSD Technical Outlook
A break over the eight-week high of 1.0981 might push the pair towards the psychological barrier of 1.1000.
The important support area is located between the 23.6% Fibonacci retracement of 1.0913 and the psychological level of 1.0900.
Technical analysis reveals that the EURUSD pair is bullish. 14-Day Relative Strength Index (RSI) is above the 50-mark. Furthermore, the Moving Average Convergence Divergence (MACD) shows a divergence above the signal line and is above the centerline. While a lagging indicator, it confirms the EUR/USD pair’s positive trend.
If the EURUSD pair breaks above its recent highs, it could gain upward support, potentially reaching the psychological barrier of 1.1000. If the January high of 1.1038 is surpassed, further exploration could go to the area around it.
On the downside, the EURUSD pair may find significant support around the 23.6% Fibonacci retracement level of 1.0913, followed by the psychological level of 1.0900. A break below the latter might force the pair to target the nine-day Exponential Moving Average (EMA) of 1.0892 before the 38.2% Fibonacci The retracement level is 1.0871, while the major support is at 1.0850.
