The EUR/USD pair has shown signs of recovery after trading near 1.0780 during the Asian session on Tuesday. Technical analysis indicates a sideways trend for the pair as it remains within a symmetrical triangle pattern. Breaking above the upper boundary of the triangle could potentially lead to a shift in momentum towards a bullish trend.
The momentum indicator Moving Average Convergence Divergence (MACD) suggests an upward momentum for the pair, with the current position above the centerline and a divergence observed above the signal line. A crossover of the signal line over the centerline would reinforce the bullish sentiment for the EUR/USD pair.
Immediate resistance for the pair is seen at the upper boundary of the symmetrical triangle around the psychological level of 1.0800. A break above this level could pave the way for the pair to test the April high of 1.0888. On the downside, key support is expected around the 14-day Exponential Moving Average (EMA) at 1.0752. A breach below this level could trigger a test of the psychological threshold of 1.0700, coinciding with the lower boundary of the symmetrical triangle at 1.0690.
In the daily chart, the EUR/USD pair could potentially test the upper boundary of the symmetrical triangle, indicating a potential shift in momentum towards a bullish trend. However, breaking below the 14-day EMA at 1.0752 could prompt the pair to test the psychological threshold of 1.0700. The MACD indicator suggests an upward momentum for the pair, with the potential for further bullish sentiment if the signal line crosses over the centerline. Overall, the pair faces immediate resistance at 1.0800 and key support at 1.0752, with further support levels at 1.0700 and 1.0601.
