EUR/USD Price Analysis: The Initial Upward Barrier Is Situated above 1.0900

During the early European session on Friday, the EUR/USD pair is trading in positive territory at approximately 1.0895 for the second day in a row. At its June meeting on Thursday, the European Central Bank (ECB) adopted a decision to reduce interest rates by 25 basis points (bps), as market analysts had anticipated. Nevertheless, traders did not anticipate a rate cut in July, and it is improbable that the rate differential between the Euro and USD will widen to the extent that was initially anticipated. The Euro is subsequently provided with some support in relation to the Greenback as a result.

The bullish sentiment on the 4-hour chart is maintained by EUR/USD, as the major pair continues to trade above the critical 100-period Exponential Moving Average (EMA). This is due to the technical perspective. Furthermore, the Relative Strength Index (RSI) is in the bullish zone, with a value of approximately 60, which supports the upward momentum. This indicates that the path of least resistance is to the upside.

The initial upside barrier will manifest in the 1.0900-1.0905 region, which denotes the psychological level and upper boundary of the Bollinger Band. The subsequent obstacle is located in the vicinity of 1.0940, which represents a maximum on March 21. Moving north, the next obstacle is observed. The subsequent upward filter to monitor is 1.0964 (high of March 13), followed by 1.0981 (high of March 8).

Conversely, the pair's initial support level is situated at approximately 1.0860, which represents the intersection of the lower limit of the Bollinger Band and a low from June 6. The 100-period EMA at 1.0846 is the subsequent contention level to monitor. Some sellers will be attracted to 1.0811, a low of May 31, if any follow-through selling occurs below this level.