EURUSD is surging to a new one week-high around the 1.1800 handle after it surpassed the Ichimoku cloud and the 1.1770 barrier. The 20-and 40-period simple moving averages (SMAs) are ready to create a bullish crossover in the short-term timeframe, while technical indicators are heading north. The MACD is extending its move above its trigger and zero lines, and the RSI is approaching the overbought zone.
In the positive scenario where the price continues to expand above today’s high of 1.1808, a new top could be formed around 1.1838. If the market manages to overcome that area, traders could look for resistance at the 1.1865-1.1880 region.
A reversal to the downside could stall at the 1.1770 support before meeting the 20- and 40-period SMAs at 1.1700. Further below, the 1.1600-1.1620 support could also provide strong support to the bears.
Regarding the medium-term picture, the outlook has been neutral over the last six weeks, with an upper boundary of 1.1865 and lower boundary of 1.1600.
To sum up, the very short-term bias is bullish, though the pair could be close to overbought levels, with the medium-term outlook being neutral.
Origin: XM
