The EUR/USD currency pair is treading cautiously, with modest gains around 1.0775, as it awaits significant market drivers in early Wednesday trading.
The EUR/USD currency pair is treading cautiously, with modest gains around 1.0775, as it awaits significant market drivers in early Wednesday trading. A bullish chart pattern known as the “Double Bottom” has formed, bolstering hopes for a potential recovery. Market participants are closely monitoring upcoming events, including a speech by European Central Bank (ECB) President Christine Lagarde and the release of the Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes. The formation of the “Double Bottom” pattern, along with recent improvements in the RSI (14) and bullish MACD signals, adds to the positive outlook for further upward movement in the EUR/USD pair. However, key obstacles lie ahead, with the 1.0800 level acting as a crucial upside resistance. The 100-Hour Moving Average (HMA), 50-HMA, and a downward-sloping trend line from early May converge at this level, posing a challenge for Euro buyers to regain control.
If the EUR/USD pair manages to surpass the 1.0800 hurdle, a potential rally towards the 200-HMA and mid-May low around 1.0835 and 1.0845, respectively, cannot be ruled out.
On the downside, a retreat in the EUR/USD pair is unlikely unless it breaches the support level of approximately 1.0760, which corresponds to the “Double Bottom” formation. In such a scenario, the pair could be exposed to a decline towards the late March low near 1.0715.
Overall, market participants are eagerly watching the upcoming events and technical indicators to gauge the future direction of the EUR/USD pair as it navigates the key resistance and support levels.
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