EURUSD hit 1.1219, a near two-week high, in yesterday’s trading. Nevertheless, it failed a successful close above the 1.12 handle. After briefly rising above 1.12 in today’s trading, it remains below this key level.
The RSI indicator has been hovering around neutral levels in previous days but has recently picked up a bit. It is currently above the 50 neutral-perceived level at 55, while it is positively sloped (albeit not steeply), suggesting there’s positive short-term momentum for the pair.
On the upside, yesterday’s high of 1.1219 could act as a barrier to up movements in price, while the 1.12 level seems to be also offering intra-day resistance. Above these two points, focus would shift to the seven-and-a-half-month high of 1.1295 from June 14, a potential important resistance mark.
Should the price decline, it could find support in the area around the 1.1150 level, a congested region in the recent past that might be of significance. Below this level, the June 20 one-month low of 1.1118 would be eyed as another support point.
Regarding the medium-term picture, it currently looks bullish with the pair recording a bullish (golden) cross in late May when the 50-day moving average (MA) moved above the 200-day one. In addition, the price is currently comfortably above both MAs. It should be noted though that the considerable divergence between the price and the 200-day MA could be a sign of an overextended rally.
Overall, the short-term bias is looking bullish at the moment, while the medium-term prospects are looking even more positive.
