16 Sep 2024
EUR/USD Price Forecast: Remains capped under descending trend channel near 1.1100
The EUR/USD pair gains ground around 1.1095 amid the softer US Dollar (USD) during the Asian trading hours on Monday. Investors will closely monitor the US Federal Reserve (Fed) monetary policy meeting on Wednesday for more cues about how aggressively the Fed will bring down interest rates.
EUR/USD remains capped under the descending trend channel on the four-hour chart. However, the constructive view of the major pair prevails as the price holds above the key 100-period Exponential Moving Averages (EMA). Additionally, the upward momentum is supported by the Relative Strength Index (RSI), which stands above the midline near 63.65, suggesting the path of least resistance is to the upside.
A decisive break above the 1.1100-1.1105 zone, the psychological level and the upper boundary of the trend channel could see a rally to 1.1155, the high of September 6. Further north, the next upside barrier is seen near 1.1200, the high of August 26.
On the other hand, the low of September 14 at 1.1072 acts as an initial support level for the major pair. The next cushion level to watch is 1.1061, the 100-period EMA. A breach of the mentioned level could see a drop to 1.1026, the low of September 3. The additional downside filter emerges at 1.0985, the lower limit of the trend channel.
