EURUSD is slightly up from the day’s open while it briefly rose above the 50-day moving average (MA) earlier in the day.
As regards the Ichimoku analysis, the Tenkan-sen line (red) crossing below the Kijun-sen (blue) is perceived as a negative short-term alignment. Notice though that both lines are currently flat, perhaps hinting that any near-term downside movement is lacking momentum at the moment and pointing to a neutral short-term picture. The RSI indicator is painting a similar picture, as it is below the 50 neutral level on the one hand, but close to it at 48.
The 50-day moving average at 1.0651 could resist a daily close above it. A break above it, would shift the focus to a potential psychological level, namely the 1.07 handle, as an additional barrier to the upside. If the price continues heading up, next resistance could come from the current level of the Kijun-sen at 1.0737.
On the downside, the Tenkan-sen 1.0628 could offer immediate support. Below this, the cloud top, which roughly coincides with the 1.06 handle, and the cloud bottom at 1.0584 might form an additional support area. Should this area fail to hold, the April 10 near six-week low of 1.0560 would be eyed next.
Looking at the medium-term picture, prices have been consolidating in recent months for a neutral to bearish outlook (given that the price is significantly below the 200-day MA).
Overall, the short-term picture is looking neutral and the medium-term neutral to bearish.
Origin: XM
