EUR/USD: the pair continues to climb and shows several bullish signs

On Tuesday, we were wondering whether, given its recent performance, the eurodollar pair might be turning upward in a sustainable manner. Confirmation is still needed to be sure, but it must be stressed that several largely positive signs have already been seen since then.

Firstly, the EUR/USD has managed to score new highs, at 1.0890 from 1.0870 on Monday. In addition, the 100-hour moving average has risen above the 200-hour moving average, which is a clear bullish signal.

Note that the pair has corrected slightly from Tuesday's highs, but is still in a rather positive direction.

As for fundamentals, note that US Consumer Confidence according to the Conference Board disappointed on Tuesday, which helped weigh on the USD, thus logically favoring the pair's rise. Indeed, the index came out at 131 points for February, versus 131.9 points forecasted by analysts.

As for the thresholds to watch, it should be noted that if the euro continues its rise, the psychological threshold of 1.09 will be the first target, ahead of the 1.0950 zone and the key psychological threshold of 1.10.

In the event of a correction, an immediate support line can be found around 1.0860, ahead of Tuesday's lows at 1.0829, and also Monday's lows near 1.08.

Currently, the EUR/USD pair is trading at 1.0889 on the forex.

Hourly EUR/USD chart