Technical Analysis – EURUSD traders appear willing to extend the uptrend
April 19, 2023 3:28 pm
EURUSD went into retreat mode last week, after it hit resistance slightly above the key resistance zone of 1.1035, marked by the peak of February 2. However, just yesterday, some buyers were interested in picking up the pair again and taking it closer to that territory. Overall, EURUSD is trading above the uptrend line drawn from the low of September 28 and above all three of the plotted moving averages, which paints a positive short-term picture.
The RSI, already above 50, has turned up again, corroborating the notion for some further advances, but the MACD, although positive, is still lying below its trigger line, keeping the risk of another setback firmly on the table.
Therefore, it may be better to wait for another decisive break above 1.1035 before examining the resumption of the prevailing uptrend. Such a move could initially aim for the 1.1175 zone, which offered resistance on March 31 and acted as key support between November 25, 2021, and January 31, 2022. If the bulls are not willing to stop there this time around, they may decide to extend their march towards the 1.1480 area, which prevented the bulls from drifting further north in January and February 2022.
On the downside, a dip below 1.0760 could confirm the break of the aforementioned uptrend line and turn the outlook neutral. But the move inviting more bears into the action may be a break below 1.0475. In such a case, the pair would be below all three of the plotted moving averages, while a lower low on the bigger timeframes would be confirmed. The slide may then extend towards the low of November 21, at 1.0215.
To sum up, EURUSD remains above the uptrend line drawn from the low of September 28 and above all three of the plotted exponential moving averages. Nonetheless, another decisive close above 1.1035 may be needed to signal the resumption of the prevailing uptrend.
EURUSD went into retreat mode last week, after it hit resistance slightly above the key resistance zone of 1.1035, marked by the peak of February 2. However, just yesterday, some buyers were interested in picking up the pair again and taking it closer to that territory. Overall, EURUSD is trading above the uptrend line drawn from the low of September 28 and above all three of the plotted moving averages, which paints a positive short-term picture.
The RSI, already above 50, has turned up again, corroborating the notion for some further advances, but the MACD, although positive, is still lying below its trigger line, keeping the risk of another setback firmly on the table.
Therefore, it may be better to wait for another decisive break above 1.1035 before examining the resumption of the prevailing uptrend. Such a move could initially aim for the 1.1175 zone, which offered resistance on March 31 and acted as key support between November 25, 2021, and January 31, 2022. If the bulls are not willing to stop there this time around, they may decide to extend their march towards the 1.1480 area, which prevented the bulls from drifting further north in January and February 2022.
On the downside, a dip below 1.0760 could confirm the break of the aforementioned uptrend line and turn the outlook neutral. But the move inviting more bears into the action may be a break below 1.0475. In such a case, the pair would be below all three of the plotted moving averages, while a lower low on the bigger timeframes would be confirmed. The slide may then extend towards the low of November 21, at 1.0215.
To sum up, EURUSD remains above the uptrend line drawn from the low of September 28 and above all three of the plotted exponential moving averages. Nonetheless, another decisive close above 1.1035 may be needed to signal the resumption of the prevailing uptrend.
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