EUR/USD is holding onto recovery gains below the 1.0400 mark heading in early Europe. The renewed sell-off in the US Dollar amid the China reopening optimism underpins the Euro. Focus shifts to ECB-speak and Germany’s inflation data.
The 20-period Simple Moving Average (SMA) on the four-hour chart aligns as interim resistance for EUR/USD ahead of 1.0450, where the ascending trend line is located. In case the pair rises above the latter and starts using it as support, it could target 1.0500 (psychological level, multi-month high set on Monday) and 1.0530 (static level).
On the downside, immediate support is located at 1.0350 (50-period SMA) before 1.0300 (static level, psychological level) and 1.0280 (100-period SMA).
Meanwhile, the Relative Strength Index (RSI) indicator stays close to 50, suggesting that EUR/USD is lacking directional momentum for the time being.