• EUR/USD holds below the 1.0600 barrier amid the risk-off mood.
• The key immediate resistance level for the pair is seen at 1.0600; 1.0560 acts as an initial support level.
• Relative Strength Index (RSI) is in the 40-60 range, indicating non-directional movement.

The EUR/USD pair remains capped under the 1.0600 psychological mark during the early European session on Friday. A rise in US Treasury bond yields and the escalating geopolitical tensions in the Middle East might boost the safe-haven asset demand like USD and act as a headwind for the major pair. EUR/USD currently trades near 1.0576, losing 0.06% for the day.

Technically, the EUR/USD pair sticks to the range-bound theme on the four-hour chart. The major pair holds above the 50- and 100-hour Exponential Moving Averages (EMAs) but the long-term EMA is above the short-term EMA, indicating the path of least resistance for the pair is to the downside.

That being said, the key immediate resistance level for EUR/USD is seen near the confluence of a psychological round mark and the the upper boundary of Bollinger Band at 1.0600. Any follow-through buying above the latter will see a rally to the next barrier at 1.0635 (high of October 11). Further north, the major pair will challenge the next hurdle at 1.0671 (high of September 22), followed by 1.0735 (high of September 20).

On the other hand, the 50-hour EMA at 1.0560 acts as an initial support level for EUR/USD. The critical support contention is located at 1.0523, representing a low of October 18 and a lower limit of the Bollinger Band. The next downside stop to watch is a round figure at 1.0500. A decisive break below the latter will see a drop to a low of October 4 at 1.0450.

It’s worth noting that the Relative Strength Index (RSI) is located in the 40-60 zone, suggesting a non-directional movement in the pair.

EUR/USD four-hour chart