EUR/USD Price Analysis: Bullish Momentum Continues, Targeting 1.0900
The EUR/USD currency pair continues to trade higher, maintaining its positive stance for the second consecutive day. As of the early European session on Friday, the pair is hovering around 1.0895, supported by a combination of fundamental and technical factors.
Fundamental Factors
The European Central Bank (ECB) recently made a decision to cut interest rates by 25 basis points (bps) at its June meeting. This move was widely anticipated by the markets; however, traders were surprised by the absence of a hint of a further rate cut in July. This unexpected development suggests that the rate differential between the Euro and USD may not widen as much as initially expected. Consequently, the Euro has gained some support against the Greenback.
Technical Analysis
EUR/USD maintains its bullish trend on the 4-hour chart, as the pair holds above the crucial 100-period Exponential Moving Average (EMA). This positive momentum is further supported by the Relative Strength Index (RSI), which stands near 60 in the bullish zone, indicating that the path of least resistance remains upward.
Key Resistance and Support Levels
The first significant resistance level for EUR/USD is located at the 1.0900-1.0905 zone, representing the upper boundary of the Bollinger Band and a psychological level. A break above this level could open the way for further gains towards 1.0940, the high of March 21. Additional resistance levels to watch include 1.0964 (high of March 13) and 1.0981 (high of March 8).
On the downside, the initial support level for EUR/USD is around 1.0860, representing the confluence of the low of June 6 and the lower limit of Bollinger Band. The next support level is the 100-period EMA at 1.0846. Further selling pressure below this level could attract sellers to 1.0811, the low of May 31.
EUR/USD Technical Summary
- Current Price: 1.0893
- Trend: Bullish
- Support Levels: 1.0860, 1.0846, 1.0811
- Resistance Levels: 1.0900-1.0905, 1.0940, 1.0964, 1.0981
Key Levels Table
| Level | Type |
|---|---|
| 1.0900-1.0905 | Resistance |
| 1.0940 | Resistance |
| 1.0964 | Resistance |
| 1.0981 | Resistance |
| 1.0860 | Support |
| 1.0846 | Support |
| 1.0811 | Support |
Summary
The EUR/USD pair continues to exhibit a bullish bias on the 4-hour chart. The pair's positive momentum is supported by the 100-period EMA and the Relative Strength Index, indicating that the path of least resistance is to the upside. The first significant resistance level to watch is at 1.0900-1.0905, followed by 1.0940, 1.0964, and 1.0981. On the downside, the initial support level is located at 1.0860, followed by 1.0846 and 1.0811.