EURUSD is in a state of confusion on the daily chart as the pair shows no clear direction, moving instead back and forth between two broken trendlines that seem to have regained some credibility over the past two weeks.
Currently, the momentum indicators are reflecting a neutral-to-positive bias for the short-term as the RSI is pushing efforts to climb above its 50 neutral mark, while the stochastics and the MACD continue to strengthen northwards.
A break above the 38.2% Fibonacci retracement of the latest rebound, which is currently keeping the pair under control at 1.0950, could open the door for the 23.6% Fibonacci of 1.1025. Higher, the bulls should overcome the previous peak of 1.1145 to extend the rally, though it would be interesting to see if the descending trendline stretched from 1.1411 can restrict upside corrections once again. In case the pair closes above 1.1145, there is an ascending trendline from 1.0878 that could come under the spotlight between 1.1200 and 1.1238.
On the downside, the 50% Fibonacci of 1.0890 and the 61.8% Fibonacci of 1.0830 may try to block the way towards the 1.0767 low, where the descending trendline from 1.1238 is also placed. If the price retreats below 1.0700 too, the bears would push towards the 1.0635 bottom, a break of which could clarify a downtrend in the bigger picture and set a new target somewhere between 1.0560 and 1.5000.
To put the market back in an uptrend, the price needs to rally above 1.1495.
Summarizing, EURUSD is in neutral mode in the short-term and only a break above 1.1495 or below 1.0635 would specify a bullish or bearish direction in the short- and long-term timeframes. In the meantime, to gain some extra ground, the price needs to rise above the 1.0950 resistance.
Origin: XM
