- EUR/USD is trading lower near 1.0855 ahead of Wednesday's US CPI data.
- The pair maintains a positive outlook above the key EMA; The RSI indicator remains in bullish territory.
- The first resistance level will be at 1.0870; the initial support level is observed at 1.0833.
EUR/USD is holding on to slight losses around 1.0855 on Wednesday during the early hours of the European session. In the United States, the March Consumer Price Index (CPI) and the FOMC minutes will be published. The monetary policy decision of the European Central Bank (ECB) will be announced on Thursday. The ECB is expected to leave rates unchanged at its April meeting, but chances are increasing that it will ease policy in June.
On the four-hour chart, the pair maintains the bullish trend, as it is above the 100 period exponential moving average (EMA). Furthermore, the Relative Strength Index (RSI) remains in bullish territory around 56.50, which means that the path of the least resistance level is upwards.
The first resistance level will emerge near the upper boundary of the Bollinger Bands at 1.0870. The next obstacle is located in the area of ​​1.0900-1.0905, where the psychological level and the high of March 18 converge. Breaking above will lead to a rally to the March 21 high at 1.0942.
The 100 EMA at 1.0833 acts as initial support level for EUR/USD. The additional bearish filter to watch is the lower boundary of the Bollinger Bands at 1.0823. Breaking this level would expose the March 28 low at 1.0775, followed by the April 1 low at 1.0730.
EUR/USD four-hour chart
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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.
