EUR/USD Strengthens to Near 1.1490 Amid Weaker US Dollar
The EUR/USD currency pair has strengthened to near 1.1490 in early Asian trading on Friday, according to Mitrade. This comes as a result of a weaker US Dollar (USD). However, despite this bullish momentum, the bearish bias persists below the 100-day SMA.
Technical analysis suggests that the EUR/USD pair maintains a negative outlook below the 100-day moving average and the Bollinger middle band. This is reflected in the Relative Strength Index (14) around 38, which hints at weak but not yet oversold momentum.
The initial support level for the pair is seen at 1.1475, with further downside pressure potentially exposing the July 13 low of 1.1377 and the June 24 low of 1.1324. On the topside, initial resistance emerges at the 100-day moving average at 1.1550.
The EUR/USD pair's movement is also influenced by interest rate decisions from major central banks. The Federal Reserve (Fed) has raised its benchmark interest rate to a range of 3.75% to 4%, while the European Central Bank (ECB) lifted its key deposit rate by 25 basis points (bps) to 2.50%.
The hawkish tone from the ECB continues to keep October's potential hike in play, with investors now seeing a 50% chance of an increase in interest rates at that time.