EURUSD has been in a consolidating mode since February 6 and is holding within the 20- and the 50-day simple moving averages (SMAs). Also, the 23.6% Fibonacci retracement level of the upward wave from 0.9535 to 1.1030 at 1.0680 is acting as strong resistance for the bulls. However, in the longer timeframe, the pair is still bullish as it is holding above the uptrend line, drawn on September 28.
From the technical perspective, the MACD oscillator is holding slightly above its trigger line in the negative region, while the RSI is pointing marginally south near the neutral threshold of 50.
Should EURUSD make a run higher, it’s likely to meet resistance at the 50-day SMA at 1.0725 ahead of the 1.0760 barrier. A successful break above this key resistance area would open the way for the 1.0800 psychological mark before meeting the 1.1030 peak.
If prices turn lower, the 20-day SMA at 1.0630 is the nearest support that could halt steeper declines. A potentially more important support, though, is the 200-exponential moving average (EMA) at 1.0530, which is also the lower band of the short-term trading range. If breached, it would shift the focus to the downside and prices would slip beneath the ascending line, erasing any remaining positive bias.
In the bigger picture, EURUSD would need to make a sustained climb above 1.0800 for the outlook to become convincingly bullish.
. Also, the 23.6% Fibonacci retracement level of the upward wave from 0.9535 to 1.1030 at 1.0680 is acting as strong resistance for the bulls. However, in the longer timeframe, the pair is still bullish as it is holding above the uptrend line, drawn on September 28.){kind=link}