EURUSD is currently marginally down for the day after two straight days of finishing the daily session lower, while the pair recorded an eight-day low of 1.0739 during yesterday’s trading.
The RSI indicator is on the one hand above the 50 neutral level at 55, but on the other hand it has come off from a level where it was comfortably above it in the previous few days. This is perhaps indicative of a change in short-term sentiment.
The 1.08 handle could serve as a psychological barrier to upside movements in price. If the price heads higher, the current level of the 200-day moving average (MA), the upper Bollinger band and Monday’s four-and-a-half month high ranging from 1.0869 to 1.0905 could form an important resistance area. Note that at the start of the week the price attempted a close above the 200-day MA but failed to achieve it.
On the downside, yesterday’s low together with the middle Bollinger line (a 20-day MA) at 1.0720 and another potential psychological level, the 1.07 handle, could form a support area. Should this area fail to hold, the 50-day MA at 1.0676 could offer additional support.
Looking at the medium-term outlook, it currently looks neutral with the price in between the 50- and 200-day MAs.
Overall, the short-term bias currently looks neutral. The same holds for the medium-term.
Origin: XM
