EURUSD is consolidating beneath the capping 50-day simple moving average (SMA), after the pullback from the multi-year top of 1.2349 bounced off the 100-day SMA. The slowing upward pace of the 50-day SMA is promoting sideways price action, while the rising 100- and 200-day SMAs are preserving the upwards structure.
The positively tilted short-term oscillators are also defending the bullish momentum. The MACD, a tad above its red trigger line, is flirting with the zero threshold, while the RSI is trying to maintain its nudge above the 50 level. Moreover, the stochastic oscillator is sustaining a positive charge, endorsing further price improvements.
Immediate upside constraints may originate from the curbing 50-day SMA at 1.2151 and the adjacent resistance band of 1.2169-1.2189, which includes the upper Bollinger band. Successfully stepping over these obstacles, another nearby deterrent at 1.2222 could test buyers’ efforts to recoup prior losses. If buying interest intensifies from here, the bulls could target the 32½-month peak of 1.2349 keeping their aim on the 1.2400-1.2413 resistance belt overhead.
If sellers manage to drive the price under the mid-Bollinger band at 1.2081, primary support may commence at the 1.2022 nearby low. Dipping below this, the 100-day SMA at 1.2002 – merged with the lower Bollinger band – could impede a descent from challenging the support section of 1.1919-1.1952.
Summarizing, EURUSD’s stalled bullish tone remains unbroken above the 100-day SMA at 1.2002 and the 1.1919-1.1952 boundary.
Origin: XM
