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- EUR/USD weakens around 1.0730 at the start of the European session on Tuesday.
- The negative outlook for the pair remains below the key 100 period moving average, with the relative strength index (RSI) bearish.
- The initial support level is located at 1.0685; The main resistance level is located in the 1.0790-1.0800 area.
EUR/USD pair It is trading softer near 1.0730 on Tuesday during early European trading hours. A modest recovery in the dollar is dragging the major pair lower. Traders prefer to wait on the sidelines before… Euro-zone Inflation data for the Harmonized Index of Consumer Prices (HICP) and the United States Retail Data. US retail sales are expected to rise 0.2% month-over-month in May.
According to the 4 hours ScheduleEUR/USD keeps the bearish atmosphere unchanged as the major pair stabilizes below the key 100-period Exponential Moving Average (EMA). The downward momentum is supported by the Relative Strength Index (RSI), which is in the bearish zone near 43.0. This indicates that the path of least resistance is to the downside.
The initial support level for the major pair is at 1.0685, the June 17 low. To the south, the downside target to watch is at 1.0665, which is the lower bound of the Bollinger band. A break below the latter would lead to a drop to 1.0610, the April 19 low.
On the upside, any subsequent buys above the intraday high of 1.0741 would see a rise to the crucial upside barrier in the 1.0790-1.0800 area. The mentioned level is the meeting of the upper border of the Bollinger band and the psychological level. A break above this level will pave the way to 1.0852, the high of June 12.
