Edges higher to near 1.0810 followed by a major support level

• EUR/USD loses ground on the hawkish remarks by Fed Chair Jerome Powell.
• Technical analysis suggests a confirmation of the bearish trend in the pair.
• The psychological level at 1.0800 could act as immediate support aligned with January’s low at 1.0794.

EUR/USD makes an effort to recover recent losses, edging higher to near 1.0810 during the Asian session on Thursday. The EUR/USD pair faces downward pressure following hawkish remarks from Federal Reserve Chairman Jerome Powell. Powell dismissed the possibility of an interest rate cut in March, citing elevated inflation levels and a robust performance of the United States (US) economy.

The major level at 1.0850 may act as immediate resistance for the EUR/USD pair. A successful break above the major level could potentially propel the EUR/USD pair to approach the resistance zone around the 23.6% Fibonacci retracement level at 1.0876 aligned with the 21-day Exponential Moving Average (EMA) at 1.0878. If the pair surpasses the resistance zone, it could inspire the bulls of the EUR/USD pair to explore the region around the psychological barrier at the 1.0900 level.

The technical analysis for the EUR/USD pair shows that the 14-day Relative Strength Index (RSI) is positioned below the 50 mark, signaling a bearish momentum in the market. In addition, the Moving Average Convergence Divergence (MACD), a lagging indicator, suggests a potential confirmation of a downward trend with the MACD line being positioned below the centerline and showing the divergence below the signal line.

Immediate support for the EUR/USD pair can be found at the psychological level of 1.0800, aligning with January’s low at 1.0794. A decisive break below this level could strengthen bearish sentiment, potentially navigating toward the major support region at the 1.0750 level.

EUR/USD: Daily Chart