EUR/USD drifts lower to near 1.1185 in Monday’s early European session as USD modestly recovers. The major pair’s downside potential is capped by Fed Chair Powell’s hint at a rate cut in September.
Technically, EUR/USD maintains a bullish outlook above the key 100-day Exponential Moving Averages (EMA). The overbought RSI at 72.70 suggests possible consolidation before further appreciation.
Resistance levels to watch are at 1.1223, 1.1275, 1.1360, and 1.1483. On the downside, support is at 1.1100, followed by 1.0940 and 1.0873.
EUR/USD Daily Chart
Euro FAQs
The Euro is the currency for the 20 European Union countries in the Eurozone. It is the second most traded currency globally, with EUR/USD being the most traded currency pair. The European Central Bank (ECB) manages the Eurozone’s monetary policy, impacting the Euro’s value based on inflation and economic data releases.
Analysis:
EUR/USD remains bullish above the 100-day EMA, with resistance at 1.1223 and support at 1.1100. The overbought RSI suggests potential consolidation before further upside movement. Monitoring ECB decisions, inflation data, and economic indicators can help understand the Euro’s performance and its impact on global markets.