EUR/USD Price Analysis: The key contention level is seen at the 1.0600–1.0605 region

Source Fxstreet
Apr 17, 2024 05:19
  • EUR/USD rebounds to 1.0625 in Wednesday’s early European session. 
  • The pair keeps the negative outlook unchanged below the key EMA; RSI indicator holds in bearish territory.
  • The initial support level is seen at the 1.0600–1.0605 zone; the immediate resistance level will emerge at 1.0710.

The EUR/USD pair posts modest gains around 1.0625 after bouncing off the fresh yearly low of 1.0600 on Wednesday during the early European trading hours. However, the further upside might be limited amid the hawkish comments from Federal Reserve (Fed) Chairman Jerome Powell and growing speculation that the European Central Bank (ECB) will start lowering interest rates in June. Investors await the Eurozone Harmonized Index of Consumer Prices (HICP) for March and ECB President Lagarde's speech for fresh catalysts. 

Technically, EUR/USD maintains the bearish stance unchanged as the major pair is below the key 100-period Exponential Moving Average (EMA) on the four-hour chart. The downward momentum is backed by the Relative Strength Index (RSI), which holds in bearish territory around 32, indicating that further downside looks favorable. 

The 1.0600–1.0605 region acts as an initial support level for the major pair, portraying the confluence of the lower limit of the Bollinger Band and psychological level. Further south, the next contention level to watch is a low of November 2 at 1.0565, followed by the 1.0500 round mark. 

On the upside, the immediate resistance level of EUR/USD will emerge near the 50-period EMA at 1.0710. The additional upside filter to watch is the 100-period EMA at 1.0756. A decisive break above this level will expose a low of March 22 and the round figure at 1.0800, en route to a high of April 9 at 1.0885. 

EUR/USD four-hour chart

EUR/USD

Overview
Today last price 1.0625
Today Daily Change 0.0006
Today Daily Change % 0.06
Today daily open 1.0619
 
Trends
Daily SMA20 1.0788
Daily SMA50 1.0818
Daily SMA100 1.086
Daily SMA200 1.0826
 
Levels
Previous Daily High 1.0654
Previous Daily Low 1.0601
Previous Weekly High 1.0885
Previous Weekly Low 1.0622
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0621
Daily Fibonacci 61.8% 1.0634
Daily Pivot Point S1 1.0595
Daily Pivot Point S2 1.0572
Daily Pivot Point S3 1.0543
Daily Pivot Point R1 1.0648
Daily Pivot Point R2 1.0677
Daily Pivot Point R3 1.07

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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