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EUR/USD halts its two-day winning streak ahead of monetary decisions from both economies.
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Technical indicators suggest a potential revisit to the weekly low at 1.0741.
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A breakthrough above the 1.0800 level could lead the pair to reach the 14-day EMA at 1.0816.
EUR/USD stopped to extend a two-day winning streak ahead of monetary policy decisions from the United States (US) and the Eurozone on Wednesday and Thursday respectively. The EUR/USD pair traded near 1.0790 during the Asian session on Wednesday.
Technical signals of the EUR/USD pair are in favor of an ongoing downward movement. With the 14-day relative strength index (RSI) below the 50 mark, there is a bearish sentiment for a possible revision to key support at the 1.0750 level before the weekly low at 1.0741.
If the pair manages to break below the latter, it could put pressure on the EUR/USD pair to navigate the four-week low at the 1.0723 level and the psychological support zone around the 1.0700 level.
Additionally, the Moving Average Convergence Divergence (MACD) suggests weakness in overall positive momentum as the MACD line remains above the centerline but diverges below the signal line. This shows a possible change in the direction of the trend.
On the upside, the EUR/USD pair may find a key resistance around the psychological zone at the 1.0800 level. A break above the barrier could reinforce the strength of the EUR/USD pair to explore the area around the 14-day exponential moving average (EMA) at 1.0816 followed by the 38.2% Fibonacci retracement at 1.0833. If the EUR/USD pair crosses these levels, the key level at 1.0850 can be tested as a further barrier.
EUR/USD: Daily Chart
EUR/USD: ADDITIONAL LEVELS TO WATCH
