- EURUSD trades sideways between 1.0725 and 1.0930
- Oscillators confirm the lack of directional momentum
- A move above 1.0930 may be needed to brighten the outlook
EURUSD pulled back on Tuesday, after hitting resistance slightly above the 1.0875 barrier, marked by the high of April 4. In the bigger picture, most of the price action has been contained between 1.0725 and 1.0930 since January 16, suggesting a neutral near-term outlook.
The lack of directional momentum is also confirmed by our short-term oscillators. The MACD, although positive, is lying below its trigger line and is pointing south. The RSI is running above 50, but it is slowly getting closer to that equilibrium barrier.
Another attempt and a successful break above 1.0875 could pave the way towards the upper end of the sideways range at around 1.0930, but a break above that hurdle is needed for the picture to brighten. Such a move may initially pave the way towards the psychological round number of 1.1000.
On the downside, a dip below 1.0800 could see scope for declines towards the lower bound of the range, at around 1.0725, the break of which could invite more bears and take the action down to the 1.0665 area, which offered support during the first half of November.
To recap, EURUSD has been trading in a sideways manner lately, staying largely contained between 1.0725 and 1.0930. For a new trend to begin, a decisive exit out of that sideways range may be needed.
