EURUSD is travelling in the Ichimoku cloud, following the rebound off the 100-day simple moving average (SMA) in the previous week. The pair has been still moving within an upward sloping channel since June 2020.
Technically, the RSI is moving horizontally marginally above the 50 level, while the stochastic is pointing up in the overbought zone, despite the bearish crossover within the %K and %D lines. The price is hovering between the 20- and 40-day simple moving averages (SMAs) and any advance above them would endorse the bullish outlook.
In case that traders continue to buy the pair, immediate resistance would come from the 1.2190 barrier, before testing the 32-month peak of 1.2348. Above that, the 1.2400 psychological level would be a crucial line for the bulls, taken from the high on April 2018. Climbing higher, the next target is the 1.2470 hurdle, identified in March 2018.
In the negative scenario, a dive below the 20-day SMA could open the door for the 100-day SMA at 1.1980 ahead of the 23.6% Fibonacci retracement level of the upward move from 1.0635 to 1.2348 at 1.1945. Slightly below this line, the 1.1920 would come in spotlight before slipping to 1.1745.
Overall, EURUSD has been bullish in the short- and the long-term timeframes.
Origin: XM
