EUR/USD Price Analysis: Post five-month high near 1.1120 ahead of US data

• EUR/USD rises toward the major resistance at the 1.1150 level.

• Technical indicators suggest a bullish momentum to reach the psychological level of 1.1200.

• The psychological level of 1.1100 could act as key support following the seven-day EMA at 1.1041.

EUR/USD continues its winning streak with the Euro (UR) gaining ground against the US Dollar (USD). This trend is likely influenced by the expected dovish stance on the US Federal Reserve’s (Fed) interest rate trajectory. The EUR/USD pair traded near the 1.1110 level during Thursday’s Asian session.

Moving Average Convergence Divergence (MACD) signals overall positive momentum for the EUR/USD pair. A position of the MACD line above the center line and a deviation above the signal line indicates a bullish sentiment.

This positive momentum could motivate bulls in the EUR/USD pair to aim for a breakthrough above the five-month high at 1.1122. If successful, this could pave the way for the EUR/USD pair to explore key resistance at 1.1150, following the next significant level at the psychological level of 1.1200.

In addition to the positive momentum indicated by the MACD, the lagging indicator’s 14-day Relative Strength Index (RSI) position is above the 50 mark. This suggests a confirmation of a possible upward trend in the EUR/USD pair.

On the downside, the EUR/USD pair could find support at the psychological level of 1.1100, following the seven-day exponential moving average (EMA) at 1.1041. A break below the EMA could lead the pair to test the psychological support zone near 1.1000, navigating further towards the zone near the 23.6% Fibonacci retracement level at 1.0964.

EUR/USD: Daily Chart