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26/08/24
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EUR/USD Dips Amid US Dollar Rebound, But Bullish Outlook Persists
The EUR/USD currency pair has seen a slight dip, settling around 1.1185 during the early trading hours in Europe on Monday. This movement can be attributed to a subtle rebound in the US Dollar, which has put downward pressure on the euro. However, the overall outlook for the pair remains positive, primarily because indications from the US Federal Reserve suggest a potential rate cut in September, which may support the euro in the near term.
From a technical perspective, the EUR/USD maintains a bullish bias by remaining above the important 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI), currently hovering near 72.70, suggests that the pair may be overbought. Consequently, traders might expect some consolidation before considering further upward movement in the Euro.
Immediate resistance for the pair lies at 1.1223, which aligns with the upper boundary of the Bollinger Band. If the euro manages to push past this level, the next significant barriers are at 1.1275 (the high recorded on July 18) and potentially at 1.1360 (high from December 16). Beyond that, traders should also keep an eye on the 1.1483 level (the January 14 high) as a further resistance level.
On the downside, the psychological support level is identified at 1.1100. A decline below this level could lead to a drop towards 1.0940 (the high set on July 18), followed further by the 1.0873 level (the 100-day EMA). The market’s focus will likely remain on upcoming economic data and central bank decisions, which will significantly influence the euro’s trajectory.
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