EUR/USD has shown a notable increase earlier this month, recently reclaiming its 200-day moving average (DMA) at 1.0725. Resistance has been observed near the 1.0950 level, while the daily MACD indicator has dipped below its trigger line, suggesting a slowdown in upward momentum.
A short-term support zone is identified between 1.0760 and 1.0725. If the pair fails to break through the resistance at 1.0950, a pullback may occur, potentially testing this support zone.
Momentum And Resistance
The recent movement in EUR/USD suggests that buyers have gained some control, pushing the pair above its long-term average. However, the inability to sustain momentum beyond 1.0950 indicates that resistance remains firm. With the MACD crossing below its trigger line, it reinforces the idea that buying pressure is losing steam.
Observing how the price behaves around the 1.0760–1.0725 area will be essential. If sellers take the lead and breach this support zone, we could see a continuation of downward pressure, potentially shifting sentiment. On the other hand, should the pair stabilise above this range, it would signal that buyers are still present, though lacking the strength to drive prices much higher for now.
For those trading derivatives, it’s necessary to assess whether recent price action justifies further optimism. If the uptrend remains intact, then dips towards support may provide buying opportunities. However, if the pair struggles to hold above 1.0725, expectations should adjust accordingly, as increased volatility could emerge.
Key Influences On Price Action
Shifting focus to broader influences, upcoming economic data releases and central bank commentary will play a role in shaping price action. Given the recent hesitation near resistance, traders should remain aware of potential false breakouts if volatility rises. By monitoring momentum indicators and key price levels, opportunities might become clearer in the weeks ahead.
