- EUR/USD could approach major support at 1.0750 after the February low at 1.0694.
- The resistance zone can be found around the 21-day EMA at 1.0798 and the 23.6% Fibonacci retracement at 1.0799.
- Traders can wait for the lagging MACD indicator to confirm the directional trend.
EUR/USD retreating from a weekly high of 1.0789 hit on Monday, snapping a four-day winning streak. The pair is trading lower around 1.0770 during Asian hours on Tuesday with a position above immediate support at the psychological level of 1.0750.
A break below the latter could weigh in on the EUR/USD pair to move in an area of ​​further support around the psychological level of 1.0700 in conjunction with the February low at 1.0694 seen on 14 February.
The EUR/USD pair could find a key resistance zone around the 21-day exponential moving average (EMA) at 1.0798 in line with the 23.6% Fibonacci retracement to 1.0799 and psychological level of 1.0800.
A solid break above the resistance zone could trigger upside support for the EUR/USD pair to probe the next major barrier at 1.0850 and return to the February high at 1.0897 in line with the psychological level of 1.0900.
Technical analysis of the EUR/USD pair suggests a mixed outlook for the market. The 14-day Relative Strength Index (RSI) is below 50, indicating bearish momentum. However, the lagging Moving Average Convergence Divergence (MACD) indicator, although still below the center line, is above the signal line, indicating tepid momentum in the market.
Given these conflicting signals, market participants may decide to wait for further confirmation of the directional trend from the MACD indicator EUR/USD pair.
