EUR/USD Faces Key Resistance Levels

The EUR/USD currency pair is encountering significant resistance near the 1.0940 level, struggling to break past this point after hitting a seven-month low of 1.1007 last week. The resistance trendline from July 2023 continues to restrict upward momentum.

Technical indicators suggest that the bullish trend could persist. The RSI remains elevated within the bullish zone without reaching overbought levels, and the MACD stays comfortably above its red signal line, signalling continued support for a bounce off the 20-day SMA.

If EUR/USD manages a decisive close above the 1.0940-1.0970 area, it could target the psychological 1.1000 level. Further gains could see the pair advancing to 1.1045, with the 1.1100 mark in sight if bullish momentum holds.

On the downside, the 20-day SMA and the 38.2% Fibonacci retracement at around 1.0875 may offer support, potentially preventing a drop to the 1.0790-1.0815 range. A breach below this level could lead to a deeper decline towards the 1.0700 mark.

Overall, while EUR/USD shows signs of further bullish potential, it remains to be seen whether it can overcome the strong resistance at 1.0940-1.0970.