Gains traction above the 1.0500 mark, German trade data looms

• EUR/USD gains traction for two straight days amid the USD softness. 
• The major pair holds below the 50- and 100-hour EMAs with a non-directional RSI. 
• The immediate resistance level for EUR/USD is located at 1.0543; the first support level is seen at 1.0488.

The EUR/USD pair gains momentum during the early European session on Thursday. Market players await the German Trade Balance for August, which is expected to decline to €15B from the previous reading of €15.9B. The major pair currently trades around 1.0525, up 0.20% on the day. 

According to the four-hour chart, the EUR/USD pair holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope, which means the path of least resistance for the pair is to the downside. However, the Relative Strength Index (RSI) is located in the 40-60 zone, indicating a non-directional movement in the major pair.

That being said, the immediate resistance level for EUR/USD is located near the 50-hour EMA at 1.0543. The additional upside filter will emerge near the upper boundary of the Bollinger Band at 1.0565. Any follow-through buying above the latter will see a rally to 1.0600, representing the confluence of the 100-hour EMA and a psychological round mark. Further north, the cross will challenge the next hurdle at 1.0635 (a low of September 14), followed by 1.0670 (a high of September 22), and finally at a psychological figure at 1.0700.

On the downside, the first support level is seen at a low of September 27 at 1.0488. The next contention to watch is near a low of October 3 at 1.0448. The next downside stop is located at 1.0433 (the lower limit of the Bollinger Band). A decisive break below the latter will see a drop to a round mark at 1.0400. 

EUR/USD four-hour chart