Ella 
EUR/USD closed in positive territory for the fifth day in a row on Friday and is now just below the psychological 1.1000 level, or the two-week high hit the previous day.
The European Central Bank (ECB) on Thursday reiterated the need to keep interest rates higher for longer, which continued to provide support for the currency. On the contrary, the Federal Reserve (Fed) indicated that it may cut interest rates next year and dragged the US dollar (USD) to a more than four-month low during the Asian session, which in turn was seen as a tailwind for the EUR/USD pair.
From a technical perspective, spot prices showed some resistance earlier this week below the 100-day simple moving average (SMA). The ensuing bounce of more than 25 points from the 1.0740 area or the near one-month low favored bullish traders. Furthermore, oscillators on the daily chart remain stable within positive zones, validating the near-term constructive outlook for the EUR/USD pair.
Still, it would be prudent to wait for some follow-through buying from the 1.1015 area or the multi-month high hit in November before moving further bullishly. The EUR/USD pair may then accelerate towards the 1.1065 area (August’s monthly high) before aiming to recapture the 1.1100 mark and test the next relevant hurdle near the 1.1100 midpoint (July 27 high ).
On the other hand, the $1.0945 area currently appears to be protecting the near-term downward trend, and a break below this area could see EUR/USD pull back to test sub-$1.0900 levels. Some follow-through buying would negate the positive outlook and drag spot prices down to 200-day EMA support, currently around the 1.0830-1.0825 area. A subsequent break below the 1.0800 handle could expose the 100-day EMA around 1.0755.
