EURUSD found some footing around the 1.0990 support level last week and returned back above the red Tenkan-sen line and the 50.0% Fibonacci retracement level of the upleg from 1.0880 to 1.1240 near 1.1060. Also, it touched a fresh one-week high near 1.1095 on Friday, signaling a possible upside correction of the pullback from 1.1240 in the short-term.
The price is currently testing the 20-day simple moving average (SMA) and a former restrictive area – the Ichimoku cloud – where any decisive close higher may prove valuable to the market. The MACD oscillator surpassed its trigger line and is moving towards the zero line, gaining some ground, while the stochastic is reaching the overbought zone.
A continuation of the upward move may meet immediate resistance around the 38.2% Fibo of 1.1100, while slightly higher the bulls could try to overcome the 40-day SMA at 1.1107 and the 1.1120 barrier. Should the price overcome these levels, the 23.6% Fibo of 1.1155 and 1.1170 could come in focus.
In the negative scenario, the pair could challenge the 50.0% Fibo of 1.1060 again, while even lower the 61.8% Fibo is standing near 1.1015. The two-month low of 1.0990 could be the next level to watch before tumbling towards the 1.0940 hurdle, identified by the low on August 2019.
In brief, EURUSD is expected to pause the south-run in the short-term, while in the medium-term, buying interest could advance if the market confirms a surge towards the six-month peak of 1.1240.
