EURUSD extends gains for the third session as the US Dollar struggles.
During the Asian session on Monday, the EURUSD maintained its winning streak, hovering below the psychological barrier of 1.0950. The Euro gains ground as a result of the lower US Dollar (USD) following the mixed US S&P Global PMI data.
The November S&P Global Composite PMI for the United States remained constant at 50.7. The Services PMI rose to 50.8 in November from 50.6 the previous month. The Manufacturing PMI, on the other hand, fell to 49.4 from 50.0.
EURUSD Technical Outlook
Technical signs point to a possible return to the three-month high of 1.0965.
The seven-day EMA, followed by the psychological milestone at 1.0900, could provide critical support.
Moreover The technical indicators for the EURUSD pair are pointing to continued higher momentum. With the 14-day Relative Strength Index (RSI) remaining above 50, there is a positive feeling indicating a possible return to the three-month high of 1.0965.
If the pair succeeds to break beyond that level, EURUSD bulls may be able to challenge the resistance zone near the psychological level of 1.1000.
Furthermore, the Moving Average Convergence Divergence (MACD) line is above both the centerline and the signal line, reinforcing the pair’s bullish momentum.
On the downside, the seven-day Exponential Moving Average (EMA) at 1.0908 appears to be the major support level, which corresponds to psychological support around 1.0900. A pause below the level might bring the EURUSD pair to the next support area around 1.0850, which corresponds to the 23.6% Fibonacci retracement at 1.0840.l
