EUR/USD retraces 0.28% to 1.1365 in Thursday trading as market participants exercise caution before ECB announcement
Technical setup maintains bullish bias above 100-day EMA despite overextended momentum readings
Critical resistance zone identified at 1.1455 with immediate support forming near 1.1264
The USDT TRC20EUR/USD currency pair demonstrates modest weakness during European trading hours, with price action hovering near the 1.1365 handle. Market participants appear reluctant to establish significant positions ahead of the European Central Bank's policy announcement scheduled for later in the session. Market consensus suggests policymakers may implement a 25 basis point reduction in benchmark rates, continuing the easing cycle initiated last year amid ongoing global trade tensions.
Technical examination of the daily chart reveals the pair maintains its constructive posture while trading above the psychologically significant 100-day exponential moving average. The 14-period Relative Strength Index currently registers at 71.50, signaling potentially overextended conditions that could precede a period of consolidation. This technical configuration suggests traders might exercise patience before anticipating additional upside momentum.
From a resistance perspective, the upper boundary of Bollinger Bands near 1.1455 presents the nearest technical hurdle. A convincing breakout above this level could potentially trigger moves toward the January 2022 peak at 1.1481, with additional resistance potentially emerging near the November 2021 high at 1.1608.
On the support side, the April 15 low at 1.1264 marks the initial technical floor. A breach below this level could expose the psychologically significant 1.1100 handle, with more substantial support potentially developing near the April 2 swing low at 1.0780.