EUR/USD Consolidates Above 1.1100 Amid Cautious Sentiment Ahead of Key Economic Data and Central Bank Decisions
EUR/USD maintains its upward momentum, crossing the 1.1100 level after bouncing back from the recent one-week low.
[[EUR/USD]] maintains its upward momentum, crossing the 1.1100 level after bouncing back from the recent one-week low. The currency pair remains indecisive around 1.1130 in early Monday trading in Europe. The market shows a corrective pullback, anticipating the release of preliminary PMI readings for July in the US and Eurozone. Additionally, investors approach the ECB and Fed’s monetary policy decisions with caution.
The Euro pair finds support from a three-month-old horizontal zone at 1.1100-1090, coupled with a diminishing bearish signal from the MACD. These factors suggest a possible extension of the ongoing corrective bounce.
However, immediate upside resistance exists around 1.1180, represented by a descending trendline from the multi-month peak on July 18. The 50-SMA around 1.1190 further acts as a barrier for sellers. Beyond that, the psychological level of 1.1200 and the recent peak at 1.1275 could pose challenges for buyers.
Conversely, a clear breach of the 1.1090 support might quickly drive the EUR/USD towards another horizontal support zone, situated around 1.1010-1000 since late June.
Should the pair continue its bearish trend below 1.1000, a crucial ascending support line from May 31, approximately at 1.0920, would be the critical level to watch before further downside movement.
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