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• EUR/USD remains under selling pressure around 1.0467 amid the stronger USD.
• The major pair holds below the 50- and 100-hour EMAs with the bearish RSI.
• The key support level is seen at the 1.0400-1.0410 zone; the first resistance level is located at 1.0550.

The EUR/USD pair remains on the defensive above the mid 1.0400s during the early European trading hours on Wednesday. The major pair bounces off the year-to-date (YTD) low of 1.0448 and currently trades near 1.0467, up 0.01% on the day.

Market players await the Eurozone Producer Price Index (PPI) and Retail Sales for fresh impetus. Also, the European Central Bank (ECB) President Lagarde's speech on Wednesday will be in the spotlight. The annual Eurozone Retail Sales for August is expected to drop 1.2% from the previous reading of a 1% fall.

From the technical perspective, the EUR/USD pair holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, which means the path of least resistance for the pair is to the downside. Furthermore, the Relative Strength Index (RSI) holds in bearish territory below 50, supporting the sellers for the time being.

That said, the key support level for the EUR/USD pair is seen at the 1.0400-1.0410 region, representing the lower limit of the Bollinger Band and a psychological round mark. The next contention to watch is near a low of September 25 at 1.0355. Further south, the next stop of the major pair is seen at 1.0320 (a low of November 29).

On the upside, the first resistance level for the major pair is located near the 50-hour EMA at 1.0550. The additional upside filter will emerge near the upper boundary of the Bollinger Band at 1.0609, followed by 1.0624 (the 100-hour EMA). Any follow-through buying above the latter will see a rally to 1.0670 (a high of September 22), followed by a psychological figure at 1.0700.

EUR/USD four-hour chart

(Click on image to enlarge)

EUR/USD

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