EURUSD is losing its recovery momentum near 1.0950, despite increased USD demand.
During the early European session on Tuesday, the EURUSD pair snaps a three-day winning streak. The key pair fell as a result of weak US Dollar (USD) demand. The EURUSD is currently trading near 1.0950, down 0.06% on the day.
Christine Lagarde, President of the European Central Bank (ECB). Recognized that growth in the Eurozone is likely to remain poor for the rest of the year. Adding that there are some signs that job growth is stalling. However, Largarde noted that. While the short-term prognosis remains bleak, the economy is expected to grow again in the coming years. As inflation continues to fall.
EURUSD Technical Outlook
The pair’s bullish outlook remains intact as it maintains above the 50- and 100-hour EMAs.
The pair’s immediate resistance level is at 1.0972, while the 1.0890-1.0900 range serves as an initial support level.
Technically, the EURUSD pair is still bullish, as it is trading above the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. The upward trend is reinforced by the Relative Strength Index (RSI), which is in bullish zone above 50, indicating that further gains are likely.
At 1.0972, the major pair’s immediate resistance level is around the upper boundary of the Bollinger Band. The key upside barrier to watch is a psychological round figure and the August 11 high of 1.1000. If the latter is broken, the rally will reach a high on August 4 at 1.1042, followed by a high on July 27 at 1.1149.
On the downside, the 1.0890-1.0900 range serves as the major pair’s initial support level. The mentioned level is the intersection of the Bollinger Band’s lower boundary, a round mark, and the 50-hour EMA. Further south, the next level of dispute is the November 22 low of 1.0852, followed by the 100-hour EMA at 1.0835. A break of the latter will result in a decline to a high of 1.0725 on November 9.
