EUR/USD Price Analysis: Floats below 1.1000 then two-month high

• EUR/USD retreats from a three-week high at 1.1012.

• A breakthrough above the 1.1000 level could lead the pair to test a two-month high at 1.1017.

• 1.0950 major level could act as a key support followed by the seven-day EMA at 1.0938.

EUR/USD broke below psychological resistance at the 1.1000 level during the Asian session on Friday after recovering from a three-week high at 1.1012. The EUR/USD pair received upward support from the less dovish tone around the European Central Bank (ECB) compared to the Federal Reserve’s (Fed) higher estimate to ease monetary policy in the first quarter of 2024.

Moving Average Convergence Divergence (MACD) indicates an overall positive momentum, as the MACD line is positioned above the centerline and signal line.

This bullish sentiment of bulls in the EUR/USD pair could overcome psychological resistance to reach a two-month high at 1.1017. The next hurdle will be the significant level at 1.1050.

Furthermore, the lagging indicator’s 14-day Relative Strength Index (RSI) moved above the 50 mark, suggesting a confirmation of a potential uptrend in the EUR/USD pair.

On the upside, the EUR/USD pair may find support at key levels at 1.0950 and the seven-day exponential moving average (EMA) at 1.0938.

A break below the latter could push the pair to test the psychological support region around 1.0900, further navigating the region around the 23.6% Fibonacci retracement level at 1.0884.

EUR/USD: Daily Chart