Title: EUR/USD Holds Mild Bullish Momentum on Daily Chart, Market Analysts Monitor Key Levels
Source: Adapted from FXStreet, originally by FXStreet Team
Link: https://www.fxstreet.com/news/eur-usd-mild-bullish-momentum-on-daily-chart-intact-ocbc-202508180923
The EUR/USD currency pair continues to exhibit mild bullish momentum according to recent analysis shared by the OCBC Bank FX Strategy team. While short-term technical signals remain cautiously optimistic, market participants are urged to watch for both upside resistance and downside risk amid macroeconomic uncertainties. Strategists from OCBC maintain that the near-term direction for EUR/USD is influenced by a confluence of technical indicators and fundamental factors, with a tilt toward cautious optimism.
This article expands upon the original FXStreet analysis provided by the FXStreet team, summarizing and detailing current market trends while providing additional insights into macroeconomic implications, key technical levels, and risk factors that may affect future price movement.
EUR/USD Outlook: Mild Bullish Structure Continues
At the time of the original report, EUR/USD was holding mild bullish tendencies on the daily time frame. This movement follows a slight retracement in earlier sessions but remains within a supportive technical structure:
– The daily Relative Strength Index (RSI) remains above the median 50-level, but not in overbought territory.
– EUR/USD stays above its 21-day simple moving average (SMA), indicating a modest, continuing upward momentum.
– The pair preserved critical support zones near the 1.0880 level, suggesting buyers maintain a degree of control.
This mild bullish technical pattern does not yet point to a fully confirmed rally, but the pair remains supported against major downside pressures for now. The FX analysts note that the next few sessions could determine the sustainability of this trend, based on upcoming U.S. and Eurozone macroeconomic data releases.
Key Technical Levels to Watch
Market participants are paying close attention to specific horizontal and psychological levels that could shape the immediate trajectory of EUR/USD:
Resistance levels:
– 1.0990: A key resistance zone from recent highs; a daily close above this level could signal a continuation of the upward trajectory.
– 1.1020: Considered a psychological resistance handle, closely watched by bulls.
– 1.1095 – 1.1100: The next significant upside barrier, which represents a multi-month high.
Support levels:
– 1.0880: Identified as the first layer of support, previously tested and respected on numerous occasions.
– 1.0825: A breach of this level may place downside pressure on the pair and risk a reversal in trend.
– 1.0770 – 1.0785: The broader downside risk zone, with deeper retracement possibilities emerging if breached.
These levels form a defined trading corridor that traders may use to evaluate entries, exits, and risk management strategies.
Technical Indicators and Sentiment
The technical analysis from the OCBC team recognizes that momentum indicators remain constructive but not excessively bullish:
– The MACD (Moving Average Convergence Divergence) remains slightly positive, emphasizing existing bullish momentum without signaling an overextension.
– The RSI lingers just above the 50-mark, reflecting balanced momentum with a slight upward bias but no signs of overheating.
– The moving averages on the 21-day, 50-day, and 100-day intervals are generally bullish, with the 21-day SMA above the longer-term averages, implying continued growth in the short term.
However, despite the mild bullish tone, price action appears cautious. Traders remain sensitive to macroeconomic news, and a surprise data point or geopolitical shock could undermine the prevailing technical outlook.
Macro-Fundamental Backdrop
In addition to the charts and indicators, the macroeconomic landscape is playing a pivotal role in shaping the narrative around EUR/USD. The following fundamental factors are being closely monitored:
1. U.S. Dollar Dynamics:
– The
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