EUR/USD Price Analysis: Posts Fresh Five-month High Near 1.1120 Ahead of US Data

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  EUR/USD rises toward the major resistance at the 1.1150 level.

■  Technical indicators suggest a bullish momentum to reach the psychological level of 1.1200.

■  The psychological level of 1.1100 could act as key support following the seven-day EMA at 1.1041.


EUR/USD maintains its winning streak, with the Euro (EUR) gaining ground against the subdued US Dollar (USD). This trend is likely influenced by the anticipated dovish stance of the US Federal Reserve (Fed) on the interest rate trajectory. The EUR/USD pair trades around the 1.1110 level during the Asian session on Thursday.


The Moving Average Convergence Divergence (MACD) signals an overall positive momentum for the EUR/USD pair. The MACD line's position above the centerline and the divergence above the signal line indicates a bullish sentiment.


This positive momentum could inspire bulls of the EUR/USD pair to aim for a breakthrough above the five-month high at 1.1122. If successful, it may pave the way for the EUR/USD pair to explore major resistance at 1.1150, following the next significant level at the psychological level of 1.1200.


In addition to the positive momentum indicated by the MACD, the lagging indicator 14-day Relative Strength Index (RSI) positions above the 50 mark. This suggests a confirmation of the potential upward trend in the EUR/USD pair.


On the downside, the EUR/USD pair could find support at the psychological level of 1.1100, following the seven-day Exponential Moving Average (EMA) at 1.1041. A break below the EMA could lead the pair to test the psychological support region around 1.1000, further navigating towards the region around the 23.6% Fibonacci retracement level at 1.0964.

EUR/USD Daily Chart, Source: FXStreet

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
AUD/USD refreshes 10-month high near 0.6670 amid upbeat market sentimentThe AUD/USD pair posts a fresh 10-month high near 0.6670 during the European trading session on Friday.
Author  FXStreet
13 hours ago
The AUD/USD pair posts a fresh 10-month high near 0.6670 during the European trading session on Friday.
placeholder
Pound Sterling faces pressure on UK GDP growth remaining stagnant in AugustThe Pound Sterling faces selling pressure against its major currency pairs on Friday after the release of the UK Gross Domestic Product and factory data for July.
Author  FXStreet
14 hours ago
The Pound Sterling faces selling pressure against its major currency pairs on Friday after the release of the UK Gross Domestic Product and factory data for July.
placeholder
Forex Today: US Dollar finds support ahead of consumer confidence dataThe US Dollar stabilizes following Thursday's decline as market focus shifts to the University of Michigan's (UoM) preliminary Consumer Sentiment Index data for September.
Author  FXStreet
14 hours ago
The US Dollar stabilizes following Thursday's decline as market focus shifts to the University of Michigan's (UoM) preliminary Consumer Sentiment Index data for September.
placeholder
US Dollar Index holds above 97.50 ahead of UoM Consumer Sentiment Index dataThe US Dollar Index (DXY) is recovering its recent losses and trading around 97.70 during the Asian hours on Friday.
Author  FXStreet
15 hours ago
The US Dollar Index (DXY) is recovering its recent losses and trading around 97.70 during the Asian hours on Friday.
placeholder
Japanese Yen struggles amid political uncertainty and risk-on mood; downside seems limitedThe Japanese Yen (JPY) struggles to capitalize on the overnight bounce from a three-day low against a broadly weaker US Dollar (USD) and ticks lower during the Asian session on Friday.
Author  FXStreet
19 hours ago
The Japanese Yen (JPY) struggles to capitalize on the overnight bounce from a three-day low against a broadly weaker US Dollar (USD) and ticks lower during the Asian session on Friday.