- EUR/USD was seen trading around the 1.0900 area after the European session, moving sideways with neutral momentum.
- Despite recent strong gains, the pair struggles to extend higher as overbought conditions weigh on momentum.
The EUR/USD pair traded with a neutral tone on Wednesday after the European session, hovering around the 1.0900 mark as market participants took a step back following its strong rally. The pair appears to be consolidating as bulls hesitate near recent highs, lacking strong momentum to push further.
From a technical perspective, the Relative Strength Index (RSI) remains in overbought territory but has started to flatten, signaling a pause in buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) continues to print green bars, suggesting that the overall bullish trend remains intact. However, the lack of immediate follow-through from buyers indicates that further gains may not be imminent.
Looking at key levels, immediate resistance is found at 1.0930, while a decisive break above this level could open the door toward 1.0980. On the downside, initial support lies near 1.0850, with stronger buying interest likely around the 200-day Simple Moving Average (SMA) at 1.0720.
EUR/USD daily chart
Read the full article here