EURUSD has been in a positive tendency in the very short-term, climbing above the 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud.
The momentum indicators are pointing to a neutral to positive bias with the RSI just above 50 and the MACD is trying to complete a bullish crossover with its trigger line in the bullish area. However, the red Tenkan-sen line is heading south, suggesting a downside reversal.
Further gains should see the October 6 high around 1.1800 acting as a major resistance as this is slightly above the 200-period SMA. A jump above this level would reinforce the bullish view and open the way towards the 1.1870 barrier ahead of the 1.1900 psychological level.
In the event of a downside correction, the 40-period SMA, which overlaps with the ascending trend line at 1.1745, could act as an obstacle before being able to re-challenge the 1.1724 support. A break below this line would take the pair until 1.1695 before slipping to the two-month low of 1.1610.
Summarizing, EURUSD is recouping some ground and if there is a successful attempt above the 200-period SMA could, this endorse the short-term upside tendency.
Origin: XM
