EURUSD is flirting with the 20-day simple moving average (SMA) near 1.1800 after the rebound off the 1.1700 critical level, which is also the lower boundary of the seven-month consolidation area.
According to the technical indicators, the RSI is rising towards the neutral threshold of 50 and the MACD oscillator is ready to cross to the upside of its trigger line in the negative region. In terms of trend indicators, the Ichimoku cloud is moving lower. However, the 20- and 40-day SMAs are turning up as well as the Ichimoku lines.
If the pair overcomes the short-term SMAs, the next target would be the 1.1910 and 1.1975 resistance levels. Marginally above these lines, the flat 200-day SMA at 1.2005 could come into the spotlight ahead of the almost-five-month high of 1.2265 and the 32-month peak of 1.2348.
On the other side, a successful drop below 1.1700 could drive the bears lower to 1.1610 and 1.1420, shifting the neutral bias to bearish. Even lower, the next support would be the 1.1170 barrier, registered in June 2020.
In brief, EURUSD has been in a trading range since January and any closing candles above 1.2267 or below 1.1700 could identify the broader outlook.
Origin: XM
