- EUR/USD is moving sideways after recent losses amid stability in the US dollar.
- The key level at 1.0950 appears to be an immediate resistance level.
- A break below 1.0900 could push the pair to cross the 50-day EMA at 1.0888.
The EUR/USD pair is consolidating after posting its latest losses in the previous session, trading near 1.0930 during the Asian session on Wednesday. EUR/USD could meet the main barrier at 1.0950 after the psychological resistance area at 1.1000.
A break above the psychological level could support EUR/USD to revisit last week’s high at 1.1038. However, the 14-day RSI for EUR/USD fell below the 50 level, indicating downward momentum.
In addition, the Moving Average Convergence and Divergence (MACD) line, although still above the center line, is showing divergence below the signal line, indicating a potential shift towards the downside. Traders may be cautious and wait for confirmation before making decisions on the pair.
On the downside, EUR/USD may face immediate support at the psychological level of 1.0900. If this level is breached decisively, it may exert downward pressure on the pair, which could lead it towards the 50-day Exponential Moving Average (EMA) at 1.0888, followed by the 38.2% Fibonacci retracement level at 1.0867 and important support at 1.0850. Traders can closely monitor these levels for potential price movements.