- EURUSD constrained below May’s barrier of 1.0894
- Technical signals reflect uncertainty
- Sellers could take control below 1.0830
Despite a false bullish breakout to 1.0915 earlier this week, EURUSD has been struggling to close above May’s bar of 1.0894.
From a technical perspective, traders are indecisive as the RSI in the four-hour chart is lacking direction above its 50 neutral mark and the MACD has stabilized around its red signal line.
On the upside, the price could re-examine the 1.0915 high if the 1.0894 barrier gives way. A continuation higher would bolster buying appetite, likely bringing the March constraining zone of 1.0940-1.0960 next into view. Should the bulls dominate there, the uptrend may expand towards the 1.0988-1.1000 trendline zone. The 1.1030 region, where the ascending line drawn from the September 2023 low is located, could be the next target.
On the downside, the 20-period simple moving average (SMA) has been buffering bearish actions around 1.0880 over the past couple of sessions. Hence, if that base cracks, the 50-period SMA might instantly come to the rescue at 1.0860. If the bears win that battle though, selling pressures could intensify towards the key support trendline at 1.0830 or lower to 1.0800.
All in all, EURUSD is in a wait-and-see mode. A close above 1.0915 would put the pair back on a bullish path, whilst a drop below 1.0830 would question the April-May uptrend.
