EURUSD has not abandoned hopes for a bullish continuation yet as the pair stayed supported around the 1.1000 level despite last week’s pullback.
Encouragingly, the constraining ascending line drawn from October 2022 has been cooling downside pressures over the past three weeks, navigating the market softly higher along with the 20-day exponential moving average (EMA). Yet, some caution is necessary as the 1.1060-1.1100 ceiling is still overhead, while the RSI and the MACD keep showing a bearish divergence against the market trend.
If the bulls find enough buyers to breach the 1.1100 wall, they may stage a fast rally towards the March 2022 bar of 1.1185 and the resistance line seen around 1.1220. Additional gains from here could lift the pair up to the 1.1365-1.1450 area, which has been a major barricade from November 2021 to February 2022. The 61.8% Fibonacci retracement level of the 2021-2022 downtrend is also positioned in the same location.
Should the bears take control below 1.1000 and beneath the 20-day EMA, the 50% Fibonacci mark of 1.0940 could immediately come to the rescue ahead of the 50-day EMA at 1.0888. Falling lower, the spotlight will turn to the 1.0770-1.0700 constraining zone. A break lower could halt somewhere between the 200-day EMA and the 38.2% Fibonacci of 1.0600.
Summing up, EURUSD is looking cautiously bullish in the short-term picture. A sustainable move above 1.1100 could motivate additional buying, whilst a drop below 1.1000 could raise fresh selling interest.
EURUSD has not abandoned hopes for a bullish continuation yet as the pair stayed supported around the 1.1000 level despite last week’s pullback.
Encouragingly, the constraining ascending line drawn from October 2022 has been cooling downside pressures over the past three weeks, navigating the market softly higher along with the 20-day exponential moving average (EMA). Yet, some caution is necessary as the 1.1060-1.1100 ceiling is still overhead, while the RSI and the MACD keep showing a bearish divergence against the market trend.
If the bulls find enough buyers to breach the 1.1100 wall, they may stage a fast rally towards the March 2022 bar of 1.1185 and the resistance line seen around 1.1220. Additional gains from here could lift the pair up to the 1.1365-1.1450 area, which has been a major barricade from November 2021 to February 2022. The 61.8% Fibonacci retracement level of the 2021-2022 downtrend is also positioned in the same location.
Should the bears take control below 1.1000 and beneath the 20-day EMA, the 50% Fibonacci mark of 1.0940 could immediately come to the rescue ahead of the 50-day EMA at 1.0888. Falling lower, the spotlight will turn to the 1.0770-1.0700 constraining zone. A break lower could halt somewhere between the 200-day EMA and the 38.2% Fibonacci of 1.0600.
Summing up, EURUSD is looking cautiously bullish in the short-term picture. A sustainable move above 1.1100 could motivate additional buying, whilst a drop below 1.1000 could raise fresh selling interest.
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