EUR/USD Holds Positive Ground Near 1.0825 in Wednesday’s Asian Session
The EUR/USD pair is trading on a stronger note around 1.0825, breaking a two-day losing streak during Wednesday’s Asian session. Despite this positive movement, the pair’s upside potential may be limited due to uncertainty surrounding potential rate cuts by the European Central Bank (ECB) in September, following disappointing economic growth data from Germany. The upcoming Federal Reserve interest rate decision will also be closely watched.
From a technical standpoint, the bearish outlook for EUR/USD remains intact as the pair continues to hold below the key 100-period Exponential Moving Average (EMA) on the 4-hour chart. The Relative Strength Index (RSI) is also signaling downward momentum, suggesting that the path of least resistance is to the downside.
The first upside target to watch is 1.0845, which coincides with the 100-period EMA. A break above this level could pave the way for further gains, with the next resistance levels at 1.0870 and 1.0900. On the downside, the key support level is seen in the 1.0795-1.0805 zone, with a breach potentially leading to a drop towards 1.0776 and 1.0709.
Overall, the EUR/USD pair remains under pressure, with the potential for further downside moves if key support levels are breached. Traders will be closely monitoring upcoming economic data releases and central bank decisions for further direction in the currency pair.
Source: https://www.fxstreet.com/news/eur-usd-price-analysis-holds-below-10850-the-path-of-least-resistance-is-to-the-downside-202407310454
