EUR/USD Price Analysis: Trims the intraday gains near the 1.0600 major level

• EUR/USD trims the intraday gains ahead of US economic data.
• MACD indicator suggests a change in momentum towards a bullish trend.
• Support at nine-day EMA, following the psychological level at 1.0500.

EUR/USD trims intraday gains, trading around the 1.0600 psychological level during the European session on Wednesday. However, the pair received upward support due to the correction in the US Dollar (USD), which could be attributed to the possibility of a pause in the interest rate-hike cycle by the US Federal Reserve (Fed).

A decisive break below the level could contribute to pressure on the pair to navigate the area around the nine-day Exponential Moving Average (EMA) at 1.0572, following the major level at 1.0500.

On the upside, the EUR/USD pair could face resistance near the region around 23.6% Fibonacci retracement at 1.0643. A firm break above the latter could open the doors for the pair to explore the region around the psychological level at 1.0650.

The Moving Average Convergence Divergence (MACD) line lies below the centerline indicating that the short-term average is beneath the long-term average. However, a noteworthy development is observed as the line diverges above the signal line, signaling a potential shift in momentum toward a bullish trend.

However, the EUR/USD pair maintains a prevailing bearish momentum, underscoring a weaker bias. This is evidenced by the 14-day Relative Strength Index (RSI) holding below the 50 level.

EUR/USD: Daily Chart