In the latest forex developments, the EURUSD pair continued its impressive bullish rally during the Asian trading session, reaching a notable three-month high at 1.0920. The upward momentum is attributed to the increasing pressure on the US Dollar, driven by expectations that the Federal Reserve may conclude its interest rate-hike cycle.
As the pair approaches the significant level of 1.0935, immediate resistance is anticipated, creating a potential barrier for further gains. Despite aiming for the psychological level at 1.1000, resistance at 1.0935 has become apparent, marked by the appearance of a shooting star candlestick, signaling a potential slowdown in the bullish momentum.
EURUSD Price Action
From a technical perspective, the EMA indicators support the bullish sentiment, with the EMA 50 positioned above the EMA 200. The Relative Strength Index (RSI) remains in bullish territory, surpassing the 60% mark. However, traders are advised to watch for a potential bearish shift if the RSI drops below 40%. Meanwhile, the Moving Average Convergence Divergence (MACD) momentum remains bullish, with both the histogram and signal line consistently above the 0 line.
While the overall momentum for EUR/USD remains bullish, traders should closely monitor candlestick price action, a potential break of trendlines, and the key support level at 1.0908 (highlighted in the purple rectangle), as these indicators may signal the initiation of a reversal in the current bullish trend.
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