EURUSD is currenlty down after recording a five-week high during yesterday’s trading.
The RSI indicator is close to the 50 neutral level at 53, suggesting that a neutral bias is in place in the near-term.
The current level of the upper Bollinger band at 1.0693 and yesterday’s high at 1.0714 could form a resistance area on the upside. A potential break above would shift the focus to 1.08, a psychological barrier that managed to resist a close above it in the recent past.
On the downside, the price is currently challenging the 50-day moving average (MA) at 1.0638, which is acting as immediate support. Below this, the middle Bollinger line (a 20-day moving average) at 1.0594 is likely to provide additional support. Should this fail to hold as well, the February 22 two-month low and lower Bollinger line, both at 1.0493, are expected to offer additional support.
Looking at the bigger picture, the pair was predominantly moving sideways over the last number of months. This is indicative of a neutral medium-term outlook. If the price moves below both the 50- and 200-day MAs for an extended period though, this would hint to a resumption of the bearish outlook that was previously in place.
Overall, both the short- and medium-term outlook is looking neutral.
Origin: XM
