EURUSD appears to be maintaining an upside tendency as it is holding above the ascending trend line and the simple moving averages (SMAs). Earlier today, the pair reached a new two-month high of 1.2149, but it returned quickly lower, flirting with the 1.2100 handle.
The mixed signals in the short-term oscillators further reflect downside retracement in the very short-term. The MACD has barely inched above its red trigger line in the positive region, while the RSI is heading south after the pullback off the overbought region.
If buyers jump above the 1.2149 resistance, which is the two-month high, a revisit of the 1.2240 barrier could unfold. Overcoming these constrictions could see resistance develop at the 1.2350 level, taken from the high on January 6.
Otherwise, if sellers drive the pair below the 1.2115 support, the 20-period SMA of 1.2090 could interrupt the pair ahead of the uptrend line around 1.2070. In the event selling interest persists, the key support region of 1.2055 and the 23.6% Fibonacci retracement level of the upward move from 1.1700 to 1.2149 at 1.2043 could come in focus. Should it fail to do so, the 1.1993 barrier could challenge the bears.
In brief, EURUSD has been in a strong bullish mode over the last month and any declines below the ascending trend line could switch the market to neutral.
Origin: XM
