EUR/USD Price Forecast: Buyers challenge 100-day SMA as momentum turns bullish
EUR/USD trades on the back foot on Thursday, snapping a two-day winning streak as the US Dollar (USD) steadies. Still, the near-term technical picture remains bullish following the late-July rebound from below 1.1400. At the time of writing, the pair trades around 1.1534, down 0.15% on the day.
In the forex market, EUR/USD is displaying a bullish trend as buyers challenge the 100-day Simple Moving Average (SMA). Following a two-day winning streak, the US Dollar steadies, preventing further gains for the euro. The pair currently trades around 1.1534, a 0.15% decrease from the previous trading day. Traders are closely monitoring the upcoming US Nonfarm Payrolls (NFP) report on Friday, which could influence Federal Reserve interest rate expectations and affect EUR/USD volatility.
Analysts at Scotiabank highlight that "fundamentals remain supportive" and that the EUR's recent recovery has mirrored the shift in yield spreads. The pair is now close to fair-value estimates. However, they caution that "further gains will likely require a shift in the outlook for relative central bank policy or an improvement in sentiment."
From a technical standpoint, the Relative Strength Index (RSI) is climbing into bullish territory and the MACD line is in positive territory, indicating that buyers still have the upper hand. Nonetheless, the pair remains range-bound between 1.1500 and 1.1600.
Key support and resistance levels are the 50-day SMA at 1.1474, the 100-day SMA at 1.1569, and the 200-day SMA at 1.1629. A daily close above the 100-day SMA could pave the way for a move toward the 1.1629-1.1700 band, while a decline below the 1.1474 support area may suggest waning bullish sentiment.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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