EURUSD is posting a strong bullish rally over the last two trading days and reached a fresh one-month high of 1.1968 during today’s European morning session. In the short- to medium-term timeframe, the price is consolidating within a one-month narrow range with an upper boundary the 1.1960 resistance level and a lower boundary the 1.1710 support level. Now looks increasingly likely that the pair would extend its gains above the upper bound of its range.
If the price successfully surpasses the aforementioned obstacle could open the way for the 1.2090 resistance barrier, which hit last September and reflects an almost a three-year high. On the flip side, if traders fail to drive the price higher, a downside movement is expected towards the 1.1710 level.
Turning to the technical indicators, in the same short-term chart, the RSI and the MACD are painting a positive picture in the short term. The Relative Strength Index (RSI) is moving slightly below the overbought zone and is strengthening its momentum, whilst the MACD oscillator is currently above its trigger line.
Looking on the weekly timeframe, the world’s most traded currency pair is ready to record the second bullish week in a row.
