EURUSD has reversed back up after finding support at the 1.1265 barrier, successfully surpassing the 20- and 40-simple moving averages (SMAs) in the daily chart. Price advanced above the 1.1400 handle and is set to complete the fourth green day in a row, approaching the long-term descending trend line. The bullish bias is further supported by the MACD, which is holding above the trigger line, while the RSI entered positive territory, signaling more gains in the very short-term.
In case of further upside pressure, the price could challenge the 1.1500 strong psychological level, registered on November 7. A strong upside violation of the aforementioned level and the downtrend line could shift the bias to a more neutral one, challenging the 23.6% Fibonacci retracement level of the downleg from 1.2550 to 1.1215, around 1.1530. Even higher, the 1.1620 resistance could be a level to focus on.
However, should the pair experience negative pressure, the market could meet support at the 1.1265 support, identified by the recent lows on November 28, before heading towards the 17-month low of 1.1215. More losses could lead the price until the 1.1115 mark, registered on June 2017.
In the long-term view, the bearish picture looks to persist for a while longer as EURUSD has been developing in a downtrend since March of the current year. A penetration of this line could move prices to post an upside correction mode.
