EUR/USD extends its gains on the second successive day, trading around 1.0910 during the Asian hours on Monday. The EUR/USD pair receives upward support on an improved risk appetite sentiment ahead of the European Central Bank's (ECB) January monetary policy meeting scheduled to be released on Thursday.
The 23.6% Fibonacci retracement level at 1.0913 acts as an immediate barrier followed by the 14-day Exponential Moving Average (EMA) at 1.0922. If the EUR/USD pair surpasses the latter, it could approach the major level at 1.0950 followed by the 38.2% Fibonacci retracement level at 1.0957.
The 14-day Relative Strength Index (RSI), which serves as a momentum oscillator measuring the speed and change of price movements, is positioned below the 50 mark, suggesting a tendency towards bearish sentiment in the market.
Additionally, the trend-following momentum indicator suggests a confirmation of the bearish trend in the EUR/USD pair as the “Moving Average Convergence Divergence (MACD)” line lies below the centreline and shows a divergence below the signal line.
The EUR/USD pair faces immediate support at the psychological level of 1.0900. A firm collapse below the level could lead the pair to navigate the monthly low at 1.0884 followed by the major support at 1.0850 level.
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