EUR/USD Awaits Direction Amid Cautious Market Sentiment and Upcoming US Data Release
[[EUR/USD]] hovers around 1.0980 as Wednesday’s European session begins, with bears taking a pause after recording the largest daily loss in 1.5 months. The cautious sentiment ahead of the US Durable Goods Orders for March, anticipated to improve to 0.8% from the previous -1.0%, also affects the Euro pair’s recent movements.
The EUR/USD pair’s immediate momentum is challenged by the 50-SMA and the 100-SMA, while an upward-sloping support line from late March provides strong support around 1.0955, further restricting the quote’s near-term movements.
It is important to note, however, that the pair’s reluctance to accept bids, combined with bearish MACD signals and a mostly stable RSI (14), keeps EUR/USD sellers optimistic.
Nonetheless, a clear break below the 1.0955 support confluence, which includes the 100-SMA and the aforementioned trend line, is necessary to convince Euro sellers.
In such a case, the 200-SMA level of 1.0865 could serve as the last defense for EUR/USD buyers.
Conversely, breaking above the 50-SMA resistance of 1.0980 will require validation from the 1.1000 psychological level to persuade Euro bulls.
Afterward, a descending resistance line from mid-April, currently around 1.1065, will be crucial for the EUR/USD pair to cross in order to maintain bullish momentum.
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