Depreciates to near 1.0820 before the 21-day EMA

• EUR/USD could meet the immediate support at the 21-day EMA at 1.0808.
• Technical analysis suggests a momentum shift toward upward momentum.
• The key resistance area appears around the major barrier at 1.0850 and the 38.2% Fibonacci retracement level at 1.0864.

EUR/USD snaps its winning streak initiated on February 14, with the US Dollar (USD) maintaining its position, supported by hawkish remarks from the Federal Reserve’s (Fed) officials on prolonging elevated interest rates. As a result, the EUR/USD pair inches lower to around 1.0820 during the Asian session on Monday.

The immediate support is evident at the 21-day Exponential Moving Average (EMA) at 1.0808, coinciding with the psychological level of 1.0800. A breach below the latter could prompt the EUR/USD pair to navigate the region around 1.0750 following the psychological level of 1.0700, in conjunction with the three-month low at 1.0694.

However, the technical analysis of the EUR/USD pair suggests a bullish sentiment as the 14-day Relative Strength Index (RSI) is positioned above the 50 mark.

Additionally, the Moving Average Convergence Divergence (MACD) is situated below the centerline but exhibits a divergence above the signal line. This lagging indicator suggests a potential transition toward bullish momentum for the EUR/USD pair.

On the upside, the EUR/USD pair may ascend toward testing the key resistance area around the major barrier at 1.0850 and the 38.2% Fibonacci retracement level at 1.0864. A break above this area could lead the EUR/USD pair to retest the previous week’s high at 1.0888 followed by the psychological level of 1.0900.

EUR/USD: Daily Chart

(The story was corrected at 05:30 GMT on Monday to say “key resistance area” instead of “key support region” in the third bullet point.)