EUR/USD trades weaker on Thursday, despite the softer US Dollar.
The major pair keeps the bearish vibe below the key EMA; RSI indicator lies below the 50-midlines.
The immediate resistance level is seen at 1.0762; 1.0700 acts as a critical support level for the major pair.
The EUR/USD pair remains on the defensive above the 1.0700 mark during the early European trading hours on Thursday. The Eurozone Gross Domestic Product (GDP) for the fourth quarter remained flat in the final quarter of 2023, in line with the flash reading. However, incoming data continues to signal weakness in the near term, which drags the Euro (EUR) lower against the US Dollar (USD). At press time, EUR/USD is trading at 1.0727, losing 0.01% on the day.
Technically, EUR/USD maintains the bearish unchanged as the major pair is below the 50- and 100-period Exponential Moving Averages (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) lies below the 50-midlines, supporting the downward momentum and suggesting that further decline looks favorable.
The 50-period EMA at 1.0762 acts as an immediate resistance level for EUR/USD. The key upside barrier to watch is the 1.0795–1.0805 zone, portraying the 100-period EMA, the upper boundary of the Bollinger Band, a psychological round mark, and a high of February 12. A decisive break above this level will see a rally to a high of January 26 at 1.0885.
On the flip side, the potential support level for the major pair is seen at 1.0700, representing a psychological figure and a low of February 13, Further north, the next contention level is located near the lower limit of the Bollinger Band at 1.0680. A breach of the latter will see a drop to a low of November 9 at 1.0660.
By Areena Fx-638435705713920873.png)