During Tuesday’s European session, the EUR/USD gained momentum and progressed towards the 1.0800 level. The data released by the ECB indicated a 4.5% year-on-year increase in negotiated wages during the fourth quarter, contributing to the Euro’s resilience against other currencies.
The Relative Strength Index (RSI) indicator, observed on the 4-hour chart, has pulled back towards 50, signaling a decline in bullish momentum following its rise to 60 on Monday. On the positive side, the 100-period Simple Moving Average (SMA) serves as immediate resistance at 1.0780, followed by 1.0800 (a psychological level and the Fibonacci 23.6% retracement of the most recent downtrend). If the EUR/USD successfully transforms the latter into support, the next target could be 1.0840 (the 200-period SMA).
Conversely, initial support lies at 1.0750 (50-period SMA), followed by 1.0725 (a static level), and 1.0700 (the termination point of the downtrend and a psychological level).
