The EUR/USD exchange rate continues to hover around the 1.0500 level, rebounding modestly to 1.0498 after touching a weekly low of 1.0452. Technical indicators suggest a precarious balance, with potential upside momentum if the pair sustains a position above the 1.0500 threshold.
Key resistance levels are noted at 1.0530 and 1.0600, while support levels are marked at 1.0452 and the year-to-date (YTD) low of 1.0331. For the fifth consecutive day, EUR/USD shows reluctance to stray significantly from the 1.0500 mark, despite the European Central Bank’s rate cut on Thursday, which briefly pushed the pair to 1.0452. Buyers have since stepped in, lifting the exchange rate closer to its current level of 1.0498.
EUR/USD Price Forecast: Technical Outlook
On the daily chart, EUR/USD remains anchored near 1.0500, unable to decisively break lower and challenge the YTD low of 1.0331. While the pair continues to form a series of lower highs, further downward movement may face resistance due to increasing buying momentum.
The Relative Strength Index (RSI) hints at strengthening buyer activity. A daily close above 1.0500 could provide the impetus for a move higher. In this scenario, the key resistance levels are:
- December 12 high at 1.0530
- Psychological barrier at 1.0600
- Last week’s peak at 1.0629
Conversely, if EUR/USD remains below 1.0500, further losses could follow. A break below 1.0452 would expose additional downside targets, including:
- November 26 low at 1.0424
- November 22 swing low at 1.0331
Traders should monitor the pair’s ability to sustain momentum near critical levels as the market reacts to the ECB’s policy decisions and broader economic factors.
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