EUR/USD Price Analysis: Pair struggles to extend gains, hovers around 1.0730
- EUR/USD weakened due to the hawkish tone surrounding the US Fed.
- Momentum indicators suggest that the pair remains to be fragile in the short term.
- Weekly low aligned to 1.0700 psychological level could act as key support.
EUR/USD treads waters to extend its gains for the second consecutive day, trading slightly higher around 1.0730 during the Asian session on Thursday. The firmer US Dollar (USD) is weighing on the EUR/USD pair as the investors seem to cheer up the hawkish tone surrounding the Federal Reserve (Fed) to maintain interest rates at a higher level for an extended period.
The Moving Average Convergence Divergence (MACD) line stays below the centerline and shows divergence below the signal line. This suggests that the recent momentum is relatively bearish.
The pair could meet the immediate support around the weekly low at 1.0702 lined up with the 1.0700 psychological level. A firm break below the latter could open the doors for the EUR/USD pair to navigate the area around June’s low at 1.0661 level.
On the upside, the nine-day Exponential Moving Average (EMA) emerges as the key resistance, followed by the 1.0800 psychological level.
In case the Euro bulls become active, the pair could break above that level, leading to exploring the area around the 14-day EMA at 1.0810 aligned to 23.6% Fibonacci retracement at 1.0838 level.
The 14-day Relative Strength Index (RSI) stays below 50, which suggests the EUR/USD pair remains to be bearish in the short term.