EURUSD has faltered in the vicinity of the 1.1900 handle with a minor pullback pausing positive price action, which commenced from the 9½-month low of 1.1664. The 100- and 200-day simple moving averages (SMAs) are endorsing a more neutral price tone, while the eased negative bearing of the 50-day SMA is proposing buyers are a step ahead.
The Ichimoku lines are indicating a pause in positive momentum, while the short-term oscillators are signalling buyers are fighting to maintain an advantage. The MACD is north of its red trigger line and is floating above the zero mark, while the RSI is losing its positive potency. The stochastic lines are flirting with the 80 level and have yet to confirm clear directional momentum.
If bullish forces resume and conquer the tough 1.1900 border, an early resistance zone could arise between the 100- and 200-day SMAs at 1.1945 and 1.2005 respectively. Surpassing the Ichimoku cloud may boost upside momentum inspiring buyers to possibly test the 1.2050 and 1.2100 barriers. From here, for additional gains to endure the pair would need to breach the 1.2147 high.
If selling interest intensifies, initial support could transpire in the region of the 50-day SMA, which currently resides at the 1.1800 handle. Dipping past this support section, the low of 1.1734 and the key trough of 1.1664 may come into focus. Lingering slightly beneath this trough is the support base moulded from the end of October until the beginning of November 2020 of 1.1600-1.1630, which may then try to halt negative pressures from gaining pace.
In conclusion, in order for EURUSD to reinstate a stronger positive tone in the short-term timeframe, the price would need to breach the 1.1900 mark and conquer the 1.2000 hurdle.
Origin: XM
