- EUR/USD remains flat after recent declines while the USD stabilizes.
- The key level of 1.0950 appears to be an immediate resistance level.
- A break below 1.0900 could allow the pair to cross the 50-day EMA at 1.0888.
EUR/USD held steady after posting recent losses in the previous session, trading around 1.0930 in Asian trading on Wednesday. EUR/USD may follow the psychological resistance area at 1.1000 and reach the major level wall at 1.0950.
If the pair breaks above the psychological level, EUR/USD could revisit last week's high level at 1.1038. However, the 14-day Relative Strength Index (RSI) for EUR/USD has fallen below the 50 milestone, indicating bearish momentum.
Additionally, the Moving Average Convergence Divergence (MACD) line is still above the center line but shows divergence below the signal line, suggesting a potential shift to a downtrend. Traders can exercise caution and wait for confirmation before making decisions on pairs.
On the downside, the EUR/USD pair could reach immediate support at the psychological level of 1.0900. A decisive breakout of this level could put downward pressure on the pair, with the 50-day exponential moving average (EMA) at 1.0888, followed by the 38.2% Fibonacci retracement at the 1.0867 level, and the key support at 1.0850. There is a possibility of heading towards. Traders are likely to closely monitor these levels for potential price movements.
