EUR/USD Price Analysis: Euro flirts with support-turned-resistance near 1.1150 as ECB, Fed verdicts loom
- EUR/USD braces for the first weekly loss in four, dribbles around the weekly bottom after three-day losing streak.
- 10-EMA prods Euro sellers amid upbeat RSI (14) line but impending bear cross on MACD challenge buyers.
- Previous resistance line from mid-May, 50-EMA act as additional downside filters.
- Fed vs. ECB play will be crucial for Euro traders to watch as policy pivot talks check respective currency buyers.
EUR/USD licks its wounds during the first negative week in four, clings to mild gains near 1.1130-40 amid early Friday morning in Europe, as market players struggle for clear directions ahead of next week’s monetary policy meetings of the European Central Bank and Federal Reserve (Fed).
Apart from the pre-event caution, the Euro pair also justifies a lack of major data/events, as well as the mixed concerns about the respective central banks while confusing the traders.
Also read: EUR/USD licks its wounds above 1.1100 after refreshing weekly low on strong US Dollar
Even so, the 10-day Exponential Moving Average (EMA) restricts the immediate downside of the EUR/USD pair near the 1.1130 level, especially amid the firmer RSI (14) line, not overbought.
That said, the previous support line from early February, now immediate resistance around 1.1140, guards the immediate upside of the Euro pair.
Following that, multiple levels near 1.1200 and 1.1230 can prod the EUR/USD bulls before directing it to the 1.1280 resistance area comprising technical swings marked during late 2021 and early 2022.
On the flip side, a daily closing beneath the 10-EMA level of 1.1130 isn’t an open invitation to the EUR/USD bears as the nine-week-old resistance-turned-support line, near 1.1100 at the latest, challenges the pair’s further downside.
In a case where the Euro sellers keep the reins past 1.1100, the 50-EMA level of around 1.0960 will act as the last defense of the bulls before directing the price to the monthly low of 1.0833.
EUR/USD: Daily chart
Trend: Limited upside expected