EUR/USD Price Analysis: Holds positive ground below the mid-1.0800s, a further upside looks favorable

Source Fxstreet
  • EUR/USD gains ground around 1.0845 amid a softer USD. 
  • The pair keeps the bullish bias unchanged above the key EMA; RSI indicator lies above the 50-midline. 
  • The first upside barrier will emerge at 1.0855; the key support level for EUR/USD is seen at the 1.0800–1.0855 zone.

The EUR/USD pair trades in positive territory below the mid-1.0800s during the early European session on Monday. The decline of the US Dollar (USD) after the downbeat US ISM Manufacturing PMI and the University of Michigan Consumer Sentiment Index provide some support to the pair. On Thursday, the European Central Bank (ECB) will announce its interest rate decision, with no change in rate expected. EUR/USD currently trades near 1.0845, gaining 0.07% on the day. 

Technically, EUR/USD maintains the bullish outlook unchanged as the major pair is above the key 100-period Exponential Moving Averages (EMA) on the four-hour timeframe. Furthermore, the upward momentum is supported by the Relative Strength Index (RSI), which stands in bullish territory above the 50-midline, suggesting a further upside cannot be ruled out in the near term. 

The immediate resistance level for the major pair will emerge at the upper boundary of the Bollinger Band and a high of February 29 at 1.0855. A bullish breakout above this level will see a rally to the 1.0895–1.0900 region, portraying a high of February 2 and I psychological round mark. Further north, the next upside target is seen at a high of January 8 at 1.0978. 

On the downside, the crucial support level for EUR/USD is located near the confluence of the lower limit of the Bollinger Band and a round figure at the 1.0800-1.0805 zone. The additional downside filter to watch is a low of February 20 at 1.0761, followed by a low of February 13 at 1.0700. 

EUR/USD four-hour chart 

 

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