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The EUR/USD pair trades on a flat note around 1.0840 despite the decline of the Greenback during the early European session on Thursday. Traders prefer to wait on the sidelines ahead of the release of US key economic data. The preliminary US Gross Domestic Product (GDP) for the second quarter (Q2) is due later on Thursday, which is estimated to grow at an annualized rate of 2.0%, which is higher than the previous quarter of 1.4%.
Technically, EUR/USD maintains the bearish outlook unchanged on the 4-hour chart as the major pair holds below the key 100-period Exponential Moving Average (EMA). Additionally, the Relative Strength Index (RSI) stands in the bearish zone below the 50-midline, indicating that the path of least resistance level is to the downside.
The initial support level for the major pair is located at 1.0820, the lower limit of the Bollinger Band. A breach of this level could see a drop to the 1.0800 psychological level. Any follow-through selling below this level will pave the way to 1.0736, a low of July 3.
On the bright side, the first upside barrier will emerge at 1.0851, the 100-period EMA. The crucial resistance level is seen at the 1.0895-1.0905 zone, representing the confluence of the upper boundary of the Bollinger Band and a high of July 23. A decisive break above this level could see a rally to 1.0927, a high of July 17.
EUR/USD 4-hour chart
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