EUR/USD Analysis: Bullish Momentum Holds Firm Above 1.0900

EUR/USD is trading positively near 1.0937 ahead of German February CPI inflation data release. The pair maintains a positive outlook if it stays above key moving averages, with the RSI indicator indicating bullish momentum above the 50-midline. The next resistance level is expected at 1.0965, while strong support is seen in the 1.0895–1.0955 zone.

During early European trading hours on Tuesday, EUR/USD is gaining momentum below the mid-1.0900s. Investors are awaiting the release of German Consumer Price Index (CPI) data, which is anticipated to show stability at 0.4% MoM and 2.5% YoY for February. The Harmonized Index of Consumer Prices (HICP) is also forecast to remain unchanged at 0.6% MoM and 2.7% YoY. Currently, EUR/USD is trading at 1.0937, reflecting a 0.11% increase for the day.

Analysis of the four-hour chart suggests that EUR/USD maintains a bullish trend, supported by trading above the key 50- and 100-period Exponential Moving Averages (EMA). The Relative Strength Index (RSI) remains bullish above the 50-midline, further supporting the buyers.

The immediate resistance level for EUR/USD is identified at 1.0965, represented by the upper boundary of the Bollinger Band. Further upward movement beyond this level could lead to a rally towards the March 8 high at 1.0981, with a significant barrier at the psychological level of 1.1000 and the January 11 high. On the downside, strong support is expected in the 1.0895–1.0905 region, where the 50-period EMA and the lower limit of the Bollinger Band converge. Additional support levels include the 100-period EMA at 1.0865 and the round mark at 1.0800, followed by the February 22 low.

EUR/USD four-hour chart 

EUR/USD