EUR/USD Price Analysis: Inches higher to near 1.0900; next barrier at four-month highs

23. July 2024 06:04:33

  • EUR/USD may maintain its upward momentum, with a potential return to the ascending channel.
  • The pair may encounter key resistance near a four-month high at 1.0922.
  • The nine-day EMA at 1.0883 level acts as immediate support.

EUR/USD advances for the second consecutive day, trading around 1.0900 during Tuesday’s Asian session. The analysis of the daily chart shows a weakening of a bullish trend, as the pair is positioned below an ascending channel.

Moreover, the 14-day Relative Strength Index (RSI), a momentum indicator, is above the 50 level, further affirming the bullish sentiment for the EUR/USD pair. Further movement will give a clear directional trend.

The EUR/USD pair could retest a potential resistance near a four-month high at 1.0922, observed on July 15, followed by the lower boundary of the ascending channel around the level of 1.0940.

A return to the ascending channel will improve the bullish bias and support the EUR/USD pair to approach the psychological level of 1.1000, followed by the upper boundary of the ascending channel near 1.1100.

On the downside, the nine-day Exponential Moving Average (EMA) at 1.0883 level acts as immediate support. A break below this level could exert downward pressure on the EUR/USD pair to navigate the region around the key level of 1.0670, potentially serving as a throwback support level.