EUR/USD Price Forecast: 100-day SMA caps Euro recovery
The Euro is poised to end Monday’s session with losses of about 0.13% against the Greenback, as recent news points to a delay in talks between the US and Iran, while, from a technical perspective, EUR/USD stalled at the 100-day Simple Moving Average (SMA) near 1.1568.
As the Euro is set to close Monday's trading session with a slight decline of around 0.13% against the US Dollar, technical indicators signal a potential consolidation period for EUR/USD. The pair has been struggling to break above the 100-day Simple Moving Average (SMA) near 1.1568, and it appears to be gaining traction only after a brief recovery above the 50-day SMA.
Momentum remains bullish for EUR/USD, as evidenced by the Relative Strength Index (RSI). However, the primary resistance level lies at the 100-day SMA. If this key level is breached, it could trigger further gains towards the 1.1600 mark, followed by the 200-day SMA at 1.1629. Once these two levels are surpassed, the next target would be the psychologically significant 1.1700 figure.
Conversely, a drop below 1.1500 could lead to a pullback towards the 50-day SMA at 1.1469. Should the pair fall further, the next key support area would be the 1.1400 mark, with a previous swing low at 1.1353 from July 28 serving as a potential bottom.
Weekend market analysis reveals that the Euro has been the strongest performer among major currencies against the New Zealand Dollar. Meanwhile, the US Dollar has gained ground, influenced by ongoing uncertainty surrounding the potential reopening of the Strait of Hormuz and the status of US-Iran negotiations. On the commodity front, gold has experienced a surge, surpassing $4,350 per troy ounce, driven by factors such as Fed interest-rate expectations and Middle East developments.
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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