Technical Analysis – EURUSD rebounds off 40-day SMA; bullish bias
EURUSD has been moving upwards after the bounce off the 40-day simple moving average (SMA) and a three-day bearish run.
The pullback off the 1.1700 psychological level opened the way for a positive structure in the short-term timeframe. The RSI is pointing up near the neutral threshold of 50, however, the stochastic is heading south, mirroring the latest selling interest.
In case the bulls hold the control, the price is ready to meet the 1.2267 barrier before meeting the 32-month peak of 1.2348 and the 1.2400 handle, registered in April 2018.
Otherwise, a dive beneath the 40-day SMA could send the bears towards the 1.1985 crucial level, which coincides with the 200-day SMA. Any decreases beneath this support could shift the bullish bias to neutral, sending the price until the 1.1700 handle.
Summarizing, EURUSD has been in a bullish tendency over the last two months, though a drop below 1.1985 could help the bears to take the upper hand.
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.
