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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

EUR/USD

Panorama
Today's Latest Price 1.0618
Today's Daily Change -0.0001
Today's Daily Change % -0.01
Today's Daily Opening 1.0619
Trends
20 Daily SMA 1.0788
SMA of 50 Daily 1.0818
SMA of 100 Daily 1,086
SMA of 200 Daily 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

Source: Fx Street

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