HomeContributorsTechnical AnalysisEURUSD Edges Higher, Tests Key Resistance Area

EURUSD Edges Higher, Tests Key Resistance Area

  • EURUSD edges higher again today, makes higher high
  • It tests the resistance set by a key area, north of 1.1032
  • Momentum indicators support the current bullish move

EURUSD is trying to record its fourth consecutive green candle as it has entered the 1.1032-1.1095 area. This is a key resistance area, which has been making the bulls’ lives difficult since February 2023 with a number of failed breakout attempts recorded. EURUSD has also recorded a higher high, above the recent local peak of 1.1016, thus keeping the bullish trend, which has been in place since the November 2023 lows, intact.

The bulls are probably feeling confident as the momentum indicators are yet to show strong rally-exhaustion signs. The RSI is hovering comfortably above its 50-threshold and the Average Directional Movement Index (ADX) is edging aggressively higher and thus pointing to a trending market. Similarly, the stochastic oscillator is trading in its overbought territory and trying to record a new higher high, matching EURUSD’s performance.

Should the bulls remain hungry, they could try to overcome the busy 1.1032-1.1095 area. If they are successful, they could then have a go at pushing EURUSD towards the March 31, 2022 and the July 18, 2023 highs at 1.1184 and 1.1275 respectively.

On the flip side, the bears are keen to defend the 1.1032-1.1095 range and then stage a move towards the 1.0798-1.086 area that is populated by the 50- & 200-day simple moving averages (SMAs) and the 23.6% Fibonacci retracement of the September 28, 2022 – July 18, 2023 uptrend. Even lower, the 1.0671-1.0727 region set by the December 15, 2022 high and the 100-day SMA could prove stronger to break than currently foreseen.

To sum up, EURUSD bulls are comfortably in control of the market, but they have now entered a key resistance area that could again lead to a sizeable correction.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading