EUR/USD TECHNICAL ANALYSIS
- EUR/USD resumes its advance after bouncing off trendline support near the psychological 1.0900 level
- Technical signals remain positive for the euro
- Key levels to watch in the near term: overhead resistance at 1.1075 and support at 1.0900
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EUR/USD resumed its northward path on Tuesday after losing ground in the last two regular sessions, bouncing from confluence support near the psychological 1.0900 level, where two major trendlines seem to converge, as shown on the daily chart below.
In late trading, the pair was up 0.42% to 1.0972, supported by relatively benign market sentiment and broad-based U.S. dollar weakness, with daily and weekly RSI pointing upwards in unison and prices above key moving averages, a sign of intact bullish impetus.
Looking ahead, technical signals continue to be favorable for the common currency, suggesting that the path of least resistance may be higher, especially as bulls remain determined to push for a decisive break on the upside.
If EUR/USD manages to extend its advance in the coming days, initial resistance appears at 1.1075. Bears defended this region last week and drove the exchange rate lower shortly after, so traders should be on the lookout for how prices react in case of a retest.
On a topside breakout, strong buying interest could be elicited, setting the stage for a possible move toward 1.1170, the next resistance in play. On the flip side, if sellers regain the upper hand and spark a bearish reversal, support appears at 1.0900, followed by 1.0730.
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