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EUR/USD loses its recovery momentum near 1.0950 amid renewed USD demand.
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The bullish outlook of the pair remains intact as it holds above the 50- and 100-hour EMAs.
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The immediate resistance level is located at 1.0972; the 1.0890–1.0900 area acts as an initial support level for the pair.
The EUR/USD pair snapped a three-day winning streak during the early European session on Tuesday. A modest US dollar (USD) demand dragged the major pair lower. At the time of writing, EUR/USD is trading near 1.0950, down 0.06% on the day.
European Central Bank (ECB) President Christine Lagarde acknowledged that eurozone growth is likely to remain weak for the rest of the year and there are some signs of slowing job growth. However, Largaard added that while the short-term outlook remains subdued, the economy is set to strengthen again in the coming years as inflation eases further.
Technically, the EUR/USD pair maintains a bullish outlook as the major pair remains above the 50- and 100-hour exponential moving averages (EMA) on the four-hour chart. The upward momentum is supported by the Relative Strength Index (RSI) which is in bullish territory above 50, indicating that further upside looks favourable.
The immediate resistance level for the major pair is located near the upper boundary of the Bollinger Bands at 1.0972. Important upside barriers to watch are a psychological round figure and the August 11 high of 1.1000. A break above the latter would see a rally to the August 4 high of 1.1042, followed by a July 27 high of 1.1149.
On the downside, the 1.0890-1.0900 zone acts as an initial support level for the major pair. The mentioned level is the confluence of the lower limit of the Bollinger Band, a round mark, and the 50-hour EMA. Further south, the next contention level is a low of November 22 at 1.0852, and finally the 100-hour EMA at 1.0835. A breach of the latter will see a drop to a high of November 9 at 1.0725.
EUR/USD four-hour chart
EUR/USD
