Technical Analysis – EUR/USD touches ascending line

forexnews4_ eurEURUSD has been in an upside movement, despite the lower low at 1.1893 in the previous days from the two-and-a-half-month peak of 1.1920. The price went back to 1.1830 as buyers failed to really challenge the 1.1900 number this week, testing the ascending line, which stands near the 40-period simple moving average (SMA) and the 1.1830 support level.

According to the technical indicators, the RSI is holding near the neutral threshold of 50 and is moving sideways, however, the stochastic posted a bullish crossover within its %K and %D lines in the oversold territory.

Should the pair strengthen its positive momentum, the next resistance could come around 1.1893. A break above this level would shift the bias to a more bullish one and open the way towards the 1.1920 barrier before touching 1.2010, registered on September 1.

On the other hand, a downside reversal beneath the 40-period SMA and the Ichimoku cloud could lead the market towards the next support at 1.1745.

Summarizing, EURUSD is bullish in the short-term, though, in the medium-term, the outlook remains neutral since prices hold within 1.1920-1.1620.

Origin: XM

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