EURUSD maintains a neutral bias in the short term as it continues to consolidate below the 50-day moving average. The longer-term uptrend stalled at 1.2091 in early September and since then there was a pullback that took the pair below the key 1.1900 level.
The RSI and MACD indicators are neutral but the market is expected to remain soft with the possibility of a move lower in the near-term to target 1.1660, where the 100-day MA is currently located. Further declines would target support at 1.1470 and 1.1290 ahead of the key 1.1100 level.
Rising back above resistance at the 50-day MA at 1.1846 could see prices move up to the 1.1900 level, which if broken, would increase the odds for another extension towards the 1.2091 peak. From here, there would be a resumption of the uptrend from April, with scope to rise to the 1.25 area.
In the near-term, EURUSD is expected to remain in a range as the market continues to be capped by the 50-day MA. But looking at the bigger picture on the daily chart, the broader trend is still up and there are no signals of a reversal yet. The pullback from multi-year highs is likely a corrective move after upside momentum weakened.
Origin: XM
