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16/09/24
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EUR/USD Soars Amid Weaker Dollar: Key Levels and Fed Outlook
In the Asian trading session on Monday, the EUR/USD currency pair maintained a position around 1.1095, reflecting a strong upward trend. The pair is benefiting from a weaker US Dollar, aligning with a positive short-term outlook as it remains above the significant 100-period Exponential Moving Average (EMA). Indicators such as the Relative Strength Index (RSI) also suggest bullish momentum, with values above 63.65.
Resistance levels are indicated around the 1.1100 – 1.1105 area, which serves as both a psychological barrier and the upper boundary of a descending trend channel observed on the four-hour chart. A decisive upward movement beyond this zone may trigger further gains, potentially pushing the exchange rate towards 1.1155, the peak recorded on September 6. Additional levels to consider for resistance include the 1.1200 level, which was the high on August 26.
Conversely, the initial support for EUR/USD can be found at 1.1072, corresponding to the low reached on September 14. Below this level, the next support threshold is positioned at 1.1061, also aligning with the 100-period EMA. A break below these levels might lead to a decline towards 1.1026, notably the low from September 3. Further downside movement could extend to 1.0985, which marks the lower boundary of the prevailing trend channel.
As traders await insights from the upcoming US Federal Reserve monetary policy meeting scheduled for Wednesday, market sentiment remains focused on how monetary strategies will evolve, especially regarding interest rate adjustments. The direction of the EUR/USD pair will be significantly influenced by these forthcoming developments.
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