EUR/USD is rising above 1.0550 in early European trading. The pair is helped by renewed US Dollar selling, as European markets open higher, despite expectations of higher rates and geopolitical risks. The focus shifts to the US Durable Goods and Housing data.

EUR/USD so far advances modestly and leaves behind five consecutive sessions with losses on the back of some tepid selling pressure around the greenback on Monday.

Indeed, investors appear to be cashing up some gains in light of the recent strong upside momentum in the dollar, forcing the USD Index (DXY) to give away some ground and return to the vicinity of the 105.00 support.

EUR/USD stays withing the lower half of the descending regression channel coming from early February. Although the Relative Strength Index (RSI) indicator on the four-hour chart suggests that the pair is about to turn oversold, the lower-limit of that channel at 1.0530 could be tested before sellers target 1.0500 (psychological level) and a fresh 2023-low at 1.0480.

In case the pair rises above 1.0570 (mid-point of the descending channel) and stabilizes there, it could extend its correction toward 1.0600 (20-period Simple Moving Average, psychological level, static level) and 1.0640 (50-period SMA). The euro is testing levels above 1.0600 and is starting to look at the next relevant resistance area at 1.0630, as it holds a bullish intraday bias. A slide back under 1.0585 would change the intraday bias to negative again.

There is a temporary up barrier at the 55-day SMA at 1.0715 ahead of the weekly peak at 1.0804 (February 14). A convincing move above the latter could mitigate the selling pressure in the near term.

EURUSD is providing fresh new highs on intraday times

Feb 27 2023