Technical Analysis – EURUSD remains above SMAs with weak momentum
April 9, 2024 12:29 pm
EURUSD recovers somewhat above 1.0800
But MACD and RSI rebounds lose steam
EURUSD recorded a stunning rally last week, surpassing the flat simple moving averages (SMAs) following the bounce off the medium-term tentative uptrend line. This week, though, the pair is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term.
The RSI is currently moving sideways marginally above the 50 territory, while the MACD is slowing down its positive momentum near its trigger and zero lines, both hinting that the next move in prices could be on the downside rather than on the upside.
Should the market extend losses, support could be near the short-term SMAs at 1.0830. A significant leg below this area could send prices towards the ascending trend line at 1.0750 before testing the 1.0720 support.
On the flip side, if the pair bounces up, immediate resistance could be met at the 1.0880 barrier. Steeper increases could drive EURUSD north towards the 1.0940 minor resistance ahead of the 1.0980-1.1000 restrictive region.
In the bigger picture, the pair is bullish as long as it holds above the rising trend line. In case it violates this line, bears could take the upper hand.
EURUSD recovers somewhat above 1.0800
But MACD and RSI rebounds lose steam
EURUSD recorded a stunning rally last week, surpassing the flat simple moving averages (SMAs) following the bounce off the medium-term tentative uptrend line. This week, though, the pair is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term.
The RSI is currently moving sideways marginally above the 50 territory, while the MACD is slowing down its positive momentum near its trigger and zero lines, both hinting that the next move in prices could be on the downside rather than on the upside.
Should the market extend losses, support could be near the short-term SMAs at 1.0830. A significant leg below this area could send prices towards the ascending trend line at 1.0750 before testing the 1.0720 support.
On the flip side, if the pair bounces up, immediate resistance could be met at the 1.0880 barrier. Steeper increases could drive EURUSD north towards the 1.0940 minor resistance ahead of the 1.0980-1.1000 restrictive region.
In the bigger picture, the pair is bullish as long as it holds above the rising trend line. In case it violates this line, bears could take the upper hand.
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