EUR/USD Price Analysis: Key containment level awaits in 1.0600-1.0605 region

• EUR/USD bounces to 1.0625 early in the European session on Wednesday.
• The pair maintains negative outlook below the key EMA; The RSI indicator remains in bearish territory.
• The initial support level is observed in the 1.0600-1.0605 zone; the immediate resistance level will emerge at 1.0710.

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

From a technical point of view, EUR/USD maintains the bearish trend, as it is below the 100 exponential moving average (EMA) on the four-hour chart. The bearish momentum is supported by the Relative Strength Index (RSI), which remains in bearish territory around 32, indicating that continued declines look favorable.

The 1.0600-1.0605 region acts as the initial support level for the pair, representing the confluence of the lower boundary of the Bollinger Bands and the psychological level. Further south, the next containment level to watch is the November 2 low at 1.0565, followed by the round mark at 1.0500.

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

EUR/USD four-hour chart