Technical Analysis – EURUSD fails to improve bullish bias; indicators are weak
EURUSD has been in a slightly descending movement after the break below the rising channel in the previous month. Currently, the price is capped by the short-term simple moving averages (SMAs) and the red Tenkan-sen and the blue Kijun-sen lines. The RSI indicator fell below the neutral threshold of 50, while the MACD is flattening around the zero line, failing to signal a clear direction on price.
If the price continues to move lower, immediate support is coming from the 1.1687 level, which is the 23.6% Fibonacci retracement level of the up leg from 1.0635 to 1.2009, before flirting with the 1.1611 barrier, taken from the latest low. A decline below these levels could open the door for the inside swing high of 1.1500, registered in the beginning of March.
On the flip side, in case of a successful jump above the 40-day SMA and the 1.1830 resistance, the market could hit the upper surface of the Ichimoku cloud around the 1.1870 level. Above that, the bulls could move towards 1.1960 and then to the 29-month high of 1.2009.
Summarizing, EURUSD is failing to improve the bullish picture that holds in the long-term timeframe. A climb above 1.2009 could increase the buying interest.
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
