EURUSD is currently at a standstill, curbed by the 1.1695 and 1.2010 boundaries, though is still communicating an intact upside development in price that recently stretched slightly above the 1.2000 psychological number. The fresh bearish overlap within the Ichimoku lines is transmitting frailty in the positive momentum, while the rising simple moving averages (SMAs) reflect an unquestionable bullish tone.
The short-term oscillators appear to be gaining strength again. The MACD, in the positive region, is below its red signal line but looks determined to retake it, while the RSI is growing from a bounce near the 50 mark. Additionally, the positively charged stochastic oscillator is declaring further progress in the pair.
Pushing over the Ichimoku lines, initial resistance may come from the 1.1916 high ahead of the 28-month peak of 1.2010. Overcoming this upper obstacle of the consolidation, the pair may meet the 1.2055 barrier, before jumping for the 1.2138 – 1.2154 resistance band. Another run up may then target the 1.2244 high from back in April of 2018.
If sellers manage to take control, early limitations may arise from the 1.1752 low ahead of the critical support section from the 1.1709 level, that being the 23.6% Fibonacci retracement of the up leg from 1.0726 to 1.2010 – until the 1.1695 trough. This reinforced zone also encompasses the cloud’s upper surface and the 50-day SMA. Should the foundation fail to halt further declines, the price may test the 1.1621 barrier from October 2018, before tackling another key support region from the 38.2% Fibo of 1.1519 until the 1.1496 border.
Concluding, EURUSD retains a bullish bias above 1.1709 and the cloud. Nonetheless, the price may shift sideways before it resumes a positive bearing.
Origin: XM
