Technical Analysis – EURUSD undecided near converging SMAs
April 8, 2024 8:27 am
EURUSD fluctuates near its 50- and 200-day SMAs
Forms two successive doji candles, unable to adopt a direction
Momentum indicators strengthen but remain negative
EURUSD experienced an aggressive decline before finding its feet at 1.0722, a region that also held strong in February. Despite its attempt to rebound, the pair has met strong resistance at the congested region that includes both the 50- and 200-day simple moving averages (SMAs) as well as the lower boundary of the Ichimoku cloud.
Should the recovery falter, the pair might test the February-March support of 1.0795. Sliding beneath that floor, the price may descend towards the recent bottom of 1.0722, which also provided support in December and February. Even lower, the 2024 low of 1.0693 could provide downside protection.
Alternatively, should the bulls conquer the converging SMAs, the recent resistance of 1.0875 could curb initial advances. A break above that region could pave the way for a series of lower highs such as 1.0941, 1.0963 and 1.0980 that constitute a descending trendline.
In brief, EURUSD has been rangebound in the last couple of sessions as moves both to the upside and downside got rejected. Meanwhile, the completion of a death cross between its 50- and 200-day SMAs could potentially trigger a new round of weakness.
EURUSD fluctuates near its 50- and 200-day SMAs
Forms two successive doji candles, unable to adopt a direction
Momentum indicators strengthen but remain negative
EURUSD experienced an aggressive decline before finding its feet at 1.0722, a region that also held strong in February. Despite its attempt to rebound, the pair has met strong resistance at the congested region that includes both the 50- and 200-day simple moving averages (SMAs) as well as the lower boundary of the Ichimoku cloud.
Should the recovery falter, the pair might test the February-March support of 1.0795. Sliding beneath that floor, the price may descend towards the recent bottom of 1.0722, which also provided support in December and February. Even lower, the 2024 low of 1.0693 could provide downside protection.
Alternatively, should the bulls conquer the converging SMAs, the recent resistance of 1.0875 could curb initial advances. A break above that region could pave the way for a series of lower highs such as 1.0941, 1.0963 and 1.0980 that constitute a descending trendline.
In brief, EURUSD has been rangebound in the last couple of sessions as moves both to the upside and downside got rejected. Meanwhile, the completion of a death cross between its 50- and 200-day SMAs could potentially trigger a new round of weakness.
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