EURUSD holds its medium-term bullish structure that was formed with the rise from the January low of 1.0340 to this week’s high of 1.1021. Higher highs and higher lows have been carved out in the past four months.
The market remains above the 200-day moving average, which gives a bullish picture and the momentum indicators are in bullish territory – RSI above 50 and MACD above zero.
However, the RSI and MACD are showing that momentum has faded, which points to diminished probability for further EURUSD strength in the near-term. The RSI is neutral and the MACD has stalled its recent rise.
Short-term weakness is expected with immediate resistance at 1.0900 and support at the 200-day moving average at 1.0825. A break below the 200-day MA would start to shift the bullish medium-term bias. Next support levels are seen at round numbers at 1.0700. and 1.0500. A break above the key 1.1000 level would strengthen the bullish bias.
Origin: XM
