Home Forex It is moving above 1.0900 and following the 23.6% Fibonacci level

It is moving above 1.0900 and following the 23.6% Fibonacci level

by SuperiorInvest


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  • EUR/USD could find immediate resistance at the 23.6% Fibonacci retracement level at 1.0913.
  • A break above the 14-day EMA at 1.0922 could lead the pair to reach a key level at 1.0950.
  • A break below the psychological level at 1.0900 could push the pair back to the monthly low at 1.0884.

EUR/USD extending its gains for a second straight day, trading around 1.0910 during Asian hours on Monday. The EUR/USD pair is receiving upside support on the improved willingness to take risks sentiment before January of the European Central Bank (ECB). Monetary Policy the meeting is to be published on Thursday.

The 23.6% Fibonacci retracement level at 1.0913 acts as an immediate barrier followed by the 14-day EMA at 1.0922. If the EUR/USD pair breaks the latter, it could approach the major level at 1.0950 followed by the 38.2% Fibonacci retracement level at 1.0957.

The 14-day Relative Strength Index (RSI), which serves as a momentum oscillator that measures speed and changes in price movements, is below the 50 mark, indicating a tendency towards bearish sentiment in the market.

Additionally, the trend-following momentum indicator suggests confirmation of the bearish trend in the EUR/USD pair as the “Moving Average Convergence Divergence (MACD)” line lies below the center line and shows a divergence below the signal line.

The EUR/USD pair faces immediate support at the psychological level of 1.0900. A solid collapse below the level could lead the pair to cross the monthly low at 1.0884 followed by major support at 1.0850.

EUR/USD: Daily chart

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