The EUR/USD pair remains stable at approximately 1.0740 prior to the European Central Bank’s announcement on monetary policy.

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• EUR/USD holds ground around 1.0740 ahead of the ECB monetary policy decision.

The pair currently trades last at 1.07325.

The previous day high was 1.0765 while the previous day low was 1.0711. The daily 38.2% Fib levels comes at 1.0732, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0744, expected to provide resistance.

EUR/USD hovers around 1.0740 during the Asian session on Thursday, attempting to recover from the previous day’s losses ahead of the policy decision from the European Central Bank (ECB).

The EUR/USD pair experienced a decline on Thursday following the release of optimistic Consumer Price Index (CPI) data from the United States (US). The US CPI Year-over-Year increased to 3.7%, up from the previous rate of 3.2%, exceeding market expectations of 3.6% for August.

The monthly core CPI showed an improvement, rising to 0.3% from the previous 0.2% for the same month. This increase was unexpected, as it was anticipated to remain unchanged. However, the annual core rate matched expectations by recording a reading of 4.3%, in line with the previous figure of 4.7%.

The pair may encounter initial support around the weekly low at 1.0705 lined up with the 1.0700 psychological level, followed by the previous week’s low at 1.0685.

A firm break below the latter could open the doors for the EUR/USD sellers to navigate the region around June’s low at 1.0661 aligned with the 1.0650 psychological level.

On the upside, a significant resistance level for the EUR/USD pair appears at the 14-day Exponential Moving Average (EMA) at 1.0769, followed by the 21-day EMA at 1.0798 lined up with the 1.0800 psychological level.

A break above that level could provide support for Euro buyers, allowing them to potentially target the area around the 23.6% Fibonacci retracement level at 1.0823.

The Moving Average Convergence Divergence (MACD) line remains below the centerline and the signal line. This configuration suggests a potential bearish momentum in the market, which can be seen as a signal that the recent downtrend may continue to strengthen.

Traders of the EUR/USD pair will likely observe the 14-day Relative Strength Index (RSI), which suggests a bearish sentiment in the short term as it lies below the 50 level.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0737 at the time of writing. Pair opened at 1.0729 and is trading with a change of 0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0804, 50 SMA 1.0941, 100 SMA @ 1.0902 and 200 SMA @ 1.0827.

The previous day high was 1.0765 while the previous day low was 1.0711. The daily 38.2% Fib levels comes at 1.0732, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0744, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0705, 1.0681, 1.0652
• Pivot resistance is noted at 1.0759, 1.0789, 1.0813

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