Technical Analysis – EURUSD pulls back off 40-day SMA around 1.1900

EURUSD found strong resistance at the 40-day simple moving average (SMA), which was hovering near the 1.1900 psychological level.

The RSI is ticking lower, trying to fall beneath its neutral threshold of 50; however, the MACD is still extending its bullish bias above its trigger line in the negative region. In trend indicators, the red Tenkan-sen line is approaching the blue Kijun-sen line, suggesting a positive bias.

If the price jumps above the 40-day SMA, immediate resistance could come from the 1.1985 and the 200-day SMA before moving towards the almost five-month high of 1.2267. Surpassing these obstacles, the 32-month peak of 1.2348 could attract attention.

Otherwise, a continuation of the negative move could meet the 1.1760 and the 1.1700 significant levels. The latter may act as a turning point before moving lower until the 1.1610 support.

Looking at the bigger picture, EURUSD has been in a neutral tendency since January and any climbs above the 200-day SMA may add optimism for a brighter outlook.

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