EUR/USD Stalls Near Multi-Week High, Struggles to Push Past 1.0500

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The EUR/USD pair struggles to build on its recent gains, moving within a narrow range just below the 1.0500 level during the Asian session on Monday. Despite this, the pair remains near a nearly three-week high reached on Friday, driven by a weaker US Dollar.

From a technical standpoint, the pair's strength above the 38.2% Fibonacci retracement of the November-January drop, along with positive daily oscillators, suggests a bullish outlook. Therefore, a push towards the 1.0545-1.0555 range, which includes the 50% retracement and the 100-day Exponential Moving Average (EMA), seems likely.

Continued buying could drive the pair towards the 1.0600 level, and possibly up to the December 2024 swing high near 1.0630, which is close to the 61.8% Fibonacci retracement. A sustained break above this level would extend the recovery from the two-year low reached in January.

On the downside, the 1.0465 level, corresponding to the 38.2% Fibonacci retracement, appears to be a key support. A decisive break below this could push the EUR/USD pair toward the 1.0400 level, with further declines potentially targeting the mid-1.0300s (23.6% Fibonacci level). A failure to maintain support may shift the bias towards bearish traders, opening the door to a move toward the 1.0200 level.

Paraphrasing text from "Investing.com" all rights reserved by the original author