The EUR/USD pair continues to trade within a well-defined range as traders await fresh catalysts. This week's technical analysis reveals several key levels that could determine the pair's next major move.
On the daily chart, the pair is testing the 50-day moving average, which has acted as dynamic support in recent weeks. A clean break above this level could open the path toward the 1.0950 resistance zone, while a rejection might lead to a retest of support at 1.0800.
The RSI is currently hovering near the neutral 50 level, suggesting that momentum is balanced between buyers and sellers. A move above 60 would indicate strengthening bullish momentum, while a drop below 40 would signal increasing bearish pressure.
Fundamentally, the interest rate differential between the Fed and the ECB remains the primary driver. Any surprises in upcoming economic data releases could trigger significant volatility in the pair.
