The EUR/USD currency pair continues its upward trend for the third consecutive day, currently trading around 1.1165 during Friday’s Asian session. This movement is primarily supported by a weakening US Dollar (USD), following the Federal Reserve’s unexpected 50 basis point rate cut during its September meeting, signaling the start of an easing cycle.
The positive trajectory for EUR/USD remains robust, buoyed by strong support above the crucial 100-period Exponential Moving Averages (EMA) on the 4-hour chart. Additionally, the Relative Strength Index (RSI), which stands at approximately 67.45, reinforces this bullish outlook, indicating potential for further gains.
A significant breakthrough above the upper Bollinger Band at 1.1172 could pave the way for a rally towards the 1.1190-1.1200 range, which aligns with both a key psychological level and the peak reached on September 18. Should momentum persist, the next notable resistance lies at 1.1240, corresponding to the high recorded on July 19.
Conversely, if bearish sentiment prevails, the September 19 low near 1.1130 will serve as the initial support level for the pair. A sustained move below this point could trigger a decline towards the psychological milestone of 1.1100, with further downside potential identified at 1.1088, where the 100-period EMA resides.
