- EUR/USD is trading in negative territory for the second consecutive day near 1.0875.
- The pair resumes a bearish outlook below the key EMA; the RSI momentum indicator remains below the midline of 50.
- The initial support level is at 1.0840; the first bullish barrier will emerge at 1.0882.
The EUR/USD pair loses momentum below the 1.0900 level during the early hours of the European session on Friday. The firmness of the US Dollar (USD) following the higher-than-expected February PPI data has triggered the possibility of the Federal Reserve delaying interest rate cuts next week, putting some selling pressure on the pair. . The EUR/USD pair is currently trading near 1.0875, losing 0.09% on the day.
On the 4-hour chart, EUR/USD resumes a bearish trend as the pair remains below the 100-period exponential moving average (EMA). Likewise, the Relative Strength Index (RSI) supports the bearish trend, as it is below the midline of 50, suggesting that the path of least resistance is downwards.
The initial support level for EUR/USD lies near the March 5 low at 1.0840. The key support level is seen at the confluence of a February 22 low and the round level of 1.0800. The additional bearish filter to watch is a February 20 low at 1.0761, followed by a February 15 low at 1.0725.
On the positive side, the first bullish barrier will emerge at the 100 EMA at 1.0882. If this level is broken, buyers will approach the March 14 high at 1.0955, followed by the Bollinger Bands upper boundary at 1.0971. A decisive break above this level will trigger a rally to 1.1000, which represents a round level and the January 11 high.
EUR/USD 4-hour chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
