EUR/USD Price Analysis: Approaching Key Resistance Level of 1.0900

EUR/USD is hovering below the psychological resistance level of 1.0900 in the Asian market hours on Monday. The pair faces downward pressure as investors exercise caution before the Federal Reserve’s upcoming interest rate decision.

Regarding potential price movements, EUR/USD may find immediate support around the 38.2% Fibonacci retracement level of 1.0871, followed by a more significant support level of 1.0850. If the pair breaks below this level, it could test the 50.0% retracement level of 1.0838, with further support anticipated at the psychological level of 1.0800.

From a technical perspective, indicators suggest a bullish sentiment for EUR/USD. The 14-day Relative Strength Index (RSI) indicates strong buying momentum by positioning above the 50 mark. Additionally, the Moving Average Convergence Divergence (MACD) shows a positive divergence above the signal line and remains above the centerline, confirming the bullish momentum for the pair.

On the upside, immediate resistance is expected at the nine-day Exponential Moving Average (EMA) around 1.0897 and the psychological barrier of 1.0900. A breakthrough above this level could propel EUR/USD towards the significant resistance at 1.0950, followed by the previous week’s high at 1.0963.

EUR/USD: Daily Chart

EUR/USD