EUR/USD is trading lower near 1.0880 during the Asian session on Thursday, as the US Dollar (USD) is making efforts to retrace its recent losses. The 14-day Relative Strength Index (RSI) for the EUR/USD pair is positioned below the 50 mark, indicating a bearish momentum in the market.
The lagging indicator Moving Average Convergence Divergence (MACD) for the EUR/USD pair suggests a potential confirmation of a downward trend. The MACD line is positioned below the centerline and is diverging below the signal line. This configuration indicates that the short-term moving average is lagging behind the long-term moving average, signaling a potential bearish momentum in the EUR/USD pair.
The 38.2% Fibonacci retracement level at 1.0867 appears as the immediate support for the EUR/USD pair followed by the major support at 1.0850. A collapse below the major support could lead the pair to navigate the area around psychological support at 1.0800, followed by the 50% retracement level at 1.0787.
On the upside, the psychological level at 1.0900 serves as an immediate barrier, with a major level at 1.0950 further complicating the path. A successful breakthrough above the major barrier could potentially inspire bullish momentum in the pair. If this occurs, the bulls may target the region around the psychological level at 1.1000, and beyond that, they could aim for January’s high at 1.1038.
EUR/USD is currently facing downward pressure as the US Dollar tries to regain its recent losses. Several technical indicators suggest a bearish momentum in the market and further downside potential for the pair.
The RSI below the 50 mark confirms the presence of a bearish trend. This indicates that the selling pressure is outweighing buying pressure at the moment. Traders should be cautious of the bearish sentiment and closely monitor market developments for any potential reversals.
The MACD indicator also supports the bearish momentum. With the MACD line positioned below the centerline and diverging below the signal line, it suggests that the short-term moving average is lagging behind the long-term moving average. This gap between the two moving averages signals a potential continuation of the downward trend.
The immediate support levels for the EUR/USD pair are at the 38.2% Fibonacci retracement level of 1.0867 and the major support level at 1.0850. These levels could act as barriers to further downside movement. However, if the pair breaks below the major support level, it could navigate towards psychological support at 1.0800, followed by the 50% retracement level at 1.0787.
Meanwhile, on the upside, the psychological level at 1.0900 poses an immediate barrier for the pair. Traders should closely watch for any breakthrough above this level as it could potentially inspire bullish momentum. If the bulls manage to surpass the major barrier at 1.0950, they may aim for the psychological level at 1.1000, with further upside targets at January’s high of 1.1038.
The EUR/USD pair is currently experiencing a bearish momentum as the US Dollar attempts to recover. Traders should be vigilant and assess market conditions for any potential shifts in sentiment. The support and resistance levels mentioned above can serve as valuable reference points when making trading decisions.
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