EURUSD maintains a bullish market structure. The market is consolidating in the near-term after a strong rally from the 1.0840 area that started in early May. Prices hit a fresh six-month high of 1.1284 last Friday but the rally stalled here as the market is close to overbought levels. This is indicated by the RSI being near 70.
The bias remains on the upside, with focus on key resistance at 1.1300. A decisive break of this level would strengthen the bullish bias and target the June 2016 high of 1.1427. From here, there is scope to target the 1.1600 handle.
A move lower would target support at 1.1075 (May 18 low). This level is close to the 23.6% Fibonacci retracement level of the rise from 1.0340 (January 3 low) to the June 2 high of 1.1284. Below this, next support comes into view at 1.0810. This support is defined by the 50% Fibonacci as well as the 200-day moving average.
Looking at the bigger picture, the bullish medium-term market structure continues to build, as the market is carving out higher highs and higher lows since January. MACD is rising, while the bullish crossover of the 50-day MA with the 200-day MA on May 22 also highlights the bullish bias.
