EUR/USD Price Analysis: Retraces the recent gains near 1.0550 ahead of ZEW Survey
- EUR/USD trades lower ahead of the ZEW Economic Sentiment Survey.
- MACD indicated a shift in momentum towards a bullish trend.
- 21-day EMA appears as the barrier, followed by the 1.0600 psychological level.
EUR/USD pulls back from the recent gains, trading lower around 1.0550 psychological level during the Asian session on Tuesday. Investors anticipate the release of the ZEW Economic Sentiment Survey for October, with expectations pointing toward an improvement from -8.9 to -8.0.
Additionally, the European Central Bank (ECB) President Christine Lagarde has informed euro-area finance ministers that the ECB is closely monitoring energy prices and the conflict between Israel and Hamas as potential sources of inflation risks.
The 21-day Exponential Moving Average (EMA) at 1.0587 emerges as the immediate resistance. A break above the latter could support the EUR/USD pair to explore the region near the 1.0600 major level, followed by the 23.6% Fibonacci retracement at the 1.0643 level.
On the flip side, the weekly low at 1.0508 could act as immediate support lined up with the 1.0500 psychological level.
The Moving Average Convergence Divergence (MACD) line lies below the centerline indicating that the short-term average is beneath the long-term average. However, a noteworthy development is observed as the line diverges above the signal line, signaling a potential shift in momentum toward a bullish trend.
However, the EUR/USD pair maintains a prevailing bearish momentum, underscoring a weaker bias. This is evidenced by the 14-day Relative Strength Index (RSI) holding below the 50 level.
EUR/USD: Daily Chart
