EURUSD has been moving upwards after the bounce off the 40-day simple moving average (SMA) and a three-day bearish run.
The pullback off the 1.1700 psychological level opened the way for a positive structure in the short-term timeframe. The RSI is pointing up near the neutral threshold of 50, however, the stochastic is heading south, mirroring the latest selling interest.
In case the bulls hold the control, the price is ready to meet the 1.2267 barrier before meeting the 32-month peak of 1.2348 and the 1.2400 handle, registered in April 2018.
Otherwise, a dive beneath the 40-day SMA could send the bears towards the 1.1985 crucial level, which coincides with the 200-day SMA. Any decreases beneath this support could shift the bullish bias to neutral, sending the price until the 1.1700 handle.
Summarizing, EURUSD has been in a bullish tendency over the last two months, though a drop below 1.1985 could help the bears to take the upper hand.
Origin: XM
