- EUR/USD could retest the previous week's high of 1.0876.
- The resistance zone appears around the 61.8% Fibo level at 1.0883 and the psychological level of 1.0900.
- The main level of 1.0850 could act as key support, followed by the nine-day EMA at 1.0833.
EUR/USD struggled to continue its bullish streak for the sixth consecutive session on Tuesday, hovering around the 1.0860 area during the European open. On the daily chart, the pair shows that it is taking support at the nine-day Exponential Moving Average (EMA), suggesting that it could move higher to retest the strong resistance at the previous week's high at 1.0876 .
Furthermore, EUR/USD could explore the 61.8% Fibonacci level at 1.0883, followed by the psychological level of 1.0900.
Technical analysis suggests bullish sentiment for EUR/USD. The 14-day Relative Strength Index (RSI) is positioned above the 50 mark, indicating strength in the buying momentum.
The lagging indicator, the Moving Average Convergence Divergence (MACD), shows a divergence above the signal line, indicating that the pair is gaining strength. However, it is still below the center line. Therefore, traders are likely to wait for the MACD to offer a clear trend direction.
On the downside, EUR/USD could find immediate support at the main level of 1.0850, followed by the nine-day EMA at 1.0833. A break below this level could lead the pair to navigate the zone around the psychological level of 1.0800 after the previous week's low at 1.0724.
EUR/USD: Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
