EURUSD has been creating one of the strongest bullish rollercoasters of the last couple months, recording a new 22-month high above the 1.1700 handle at 1.1723.
According to the technical indicators, the MACD is strengthening its upside tendency well above its trigger and zero lines, while the RSI is hovering in the overbought territory with strong momentum, however, negative correction may be on cards in the near future.
In case of steeper increases, the price could open the door for the 1.1815 – 1.1840 resistance area, taken from the highs on September and June 2018. More gains could lead the pair towards the 1.2000 psychological mark, registered on May 2018. Such a move may endorse the positive outlook in the longer timeframe as well.
On the other hand, a decrease could find immediate support at the 1.1620 – 1.1570 support, taken from the inside swing tops on December 2018 and January 2019. Below that, the 1.1495 barrier and the 20- and 40-day simple moving averages (SMAs) at 1.1400 and 1.1327 respectively, could provide significant obstacles for the bears. Moving lower, the 1.1145 – 1.1180 zone could attract attention.
Concluding, EURUSD has been in a positive picture since March 20 and only a decisive slip beneath the 200-day SMA may change this outlook.
Origin: XM
