EUR/USD continues to push higher toward 1.0800 on broad USD weakness

EUR/USD preserves its bullish momentum and continues to push higher toward 1.0800 on Tuesday. The positive shift witnessed in risk sentiment doesn’t allow the US Dollar to find demand and helps the pair push higher. Existing Home Sales will be featured in the US economic docket.

The Relative Strength Index (RSI) indicator on the four-hour chart holds comfortably above 50, suggesting that buyers remain in control. On the upside, 1.0750 (static level) aligns as key resistance. In case the pair manages to flip that level into support, it could target 1.0770 (static level) and 1.0800 (static level, psychological level) next.

First support is located at 1.0700 (psychological level, static level, ascending trend line) before 1.0660 (200-period Simple Moving Average (SMA)) and 1.0640 (100-period SMA).

Following a consolidation phase at around 1.0700 in the Asian session, EUR/USD has regained its traction and climbed to a weekly highs above 1.0730 in the European morning. Although the positive shift witnessed in risk sentiment could help the pair keep its footing, investors could refrain from betting on a steady uptrend ahead of the US Federal Reserve’s (Fed) policy announcements.

While testifying before the European Parliament on Monday, European Central Bank (ECB) President Christine Lagarde noted that they would have indicated that further rate hikes will be needed if there were no tensions in markets. She also repeated that inflation in the Eurozone is projected to remain too high for too long. These comments failed to trigger a noticeable market reaction but allowed the Euro to stay resilient against its major rivals.

Reflecting the upbeat market mood, Euro Stoxx 50 is up more than 1.5% in the early European session. Moreover, US stock index futures are up around 0.3%.

ZEW Survey’s Economic Sentiment Index for Germany and the Eurozone will be featured in the European economic docket. The survey is forecast to reveal a deterioration in sentiment in March due to the Silicon Valley Bank and Credit Suisse turmoil. In case the decline is more severe than expected, the Euro could lose some interest with the immediate reaction.

In the second half of the day, Existing Home Sales from the US will be looked upon for fresh impetus. As mentioned above, however, markets are unlikely to take large positions before the Fed’s rate decision on Wednesday.

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