The EUR/USD currency pair is keeping its range below 1.1150, staying on the defensive in the European session. A broad US Dollar rebound led by the sharp rally in USD/JPY is capping the upside in the pair.
Traders refrain from placing fresh bets on the major ahead of next week’s ECB and Fed decisions.
Technical Overview
The Relative Strength Index (RSI) indicator on the four-hour chart stays well below 50, while holding above 30, suggesting that EUR/USD has more room on the downside before turning technically oversold.
On the downside, 1.1100 (Fibonacci 38.2% retracement of the latest uptrend) aligns as first support before 1.1050 (100-period Simple Moving Average (SMA), Fibonacci 50% retracement) and 1.1000 (psychological level, Fibonacci 61.8% retracement).
In case the pair rises above 1.1160 (Fibonacci 23.6% retracement), additional gains toward 1.1180 (50-period SMA) and 1.1200 (psychological level, static level, 50-period SMA) could be seen.
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