EUR/USD Keep bullish vibe above 1.1600, political turmoil in France might cap gains
- EUR/USD trades with mild losses around 1.1620 in Monday’s early European session.
- Positive view of the pair prevails above the 100-day EMA, but further downside cannot be ruled out with bearish RSI.
- The immediate resistance level emerges at 1.1657; the first support level to watch is 1.1555.
The EUR/USD pair posts modest losses near 1.1620 during the early European session on Monday. Markets hope for a compromise in the United States (US)-China trade war, which supports the US Dollar (USD) against the Euro (EUR). Additionally, political turmoil in France might cap the upside for the shared currency in the near term.
Technically, the constructive outlook of EUR/USD remains in place as the major pair is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. However, the Relative Strength Index (RSI) stands below the midline near 42.60. This indicates that further downside cannot be ruled out in the near term.
On the bright side, the first upside barrier emerges at 1.1657, the low of September 26. Any follow-through buying above the mentioned level could see a rally to 1.1758, the high of October 3. Further north, the next resistance level is seen at 1.1820, the high of September 23.
In the bearish case, the 100-day EMA of 1.1555 acts as a key support level for EUR/USD. A breach of this level could drag the major pair toward 1.1403, the low of July 31. The additional downside filter to watch is 1.1347, the low of June 2.
EUR/USD daily chart
