EURUSD is trading within a descending move on a long-term timeframe over the last nine years. However, the pair has managed to advance more than 12% so far during 2017 following the rebound from the major support level of 1.0340 – a 14-year low. The world’s most traded currency pair recorded eight bullish months out of 12 in the year to date and is currently trading above the 50-month simple moving average (SMA), which is acting as a significant obstacle for the bear traders.
EURUSD is trading within a descending move on a long-term timeframe over the last nine years. However, the pair has managed to advance more than 12% so far during 2017 following the rebound from the major support level of 1.0340 – a 14-year low. The world’s most traded currency pair recorded eight bullish months out of 12 in the year to date and is currently trading above the 50-month simple moving average (SMA), which is acting as a significant obstacle for the bear traders.
Over the last five months, the price has remained constrained below the 1.2100 psychological level and the outlook for the next year is for a test of the 1.2570 resistance level, which coincides with the 100-month SMA, conditional upon the price breaking above the aforementioned psychological level. Moreover, on the monthly chart, the next level to have in mind is the 1.2750 barrier, which stands near the long-term descending trend line that has been holding since July 2008. However, the price needs to go through the 38.2% Fibonacci retracement level, at 1.2520, between the high at 1.6040 and the low at 1.0340.
On the other hand, in case of a sell-off, the bears could open the way for the 1.1310 support level if there is a penetration of the 1.1550 barrier.
Going to the weekly timeframe, EURUSD is trading well above the three simple moving averages (50, 100 and 200), an indication of further buying interest. Remaining in the same chart, the technical indicators are holding within the positive territory and the RSI indicator is pointing to the upside. However, the MACD oscillator is moving below the trigger line with weakening momentum.
Having also a look at the daily timeframe, the single currency is developing within a shallow downward sloping channel against the greenback over the last three months, with a high at 1.2090 and the low at 1.1550. The MACD and the RSI indicators are slightly flattening above their mid-levels.
