EURUSD is consolidating after pausing its recent uptrend. The market was unable to rise above the key 1.1300 level and has now found support around another important psychological level at 1.1200. This support area is also highlighted by the tenkan-sen line.
The bullish market structure that has been in place since the rise from the January 3 low of 1.0340 to the six-month high of 1.1284 is still intact. Upside pressure has faded and this is indicated by the RSI which has turned back down. The MACD has also stopped rising. This has resulted in a neutral bias in the near-term.
A daily close below 1.1200 would target further support at 1.1100 and 1.1000. Below this, the bias to the downside could gain momentum with scope for prices to fall to the 200-day moving average around 1.0817. A break below this would change the bigger picture and the medium-term trend would shift to neutral from bullish.
The market would have to rise above 1.1300 to resume the uptrend and target 1.1400. the bullish crossover of the 50-day moving average above the 200-day MA and the rising ichimoku cloud are supporting the bullish outlook for now. Meanwhile, the RSI and MACD remain in bullish territory.
