EURUSD has been in a steep rally over the last four days, creating a new two-month peak around the 1.1145 resistance level. The price rebounded on the bullish crossover within the 20- and 40-day simple moving averages (SMAs), exiting from the short-term consolidation area and surpassing the flat 200-day SMA.
Looking at the technical indicators, the MACD oscillator is climbing above the trigger and zero lines with strong momentum, while the RSI is heading towards the overbought levels, suggesting a possible pullback on price in the near term.
Any advances above the 1.1145 barrier could open the door for more gains until the next resistance of 1.1240, taken from the minor peak on March 16. Even higher, a significant run would send prices to the 13-month high of 1.1495, achieved on March 9.
On the flip side, a potential retracement could find support at the 1.1020 – 1.0985 zone, which encapsulates the 200-day SMA. A slip below that area could hit the 20- and 40-day SMA currently around 1.0911 and 1.0893 respectively ahead of the 1.0770 crucial level. Below these lines, the 1.0720 support is coming into focus before diving to the three-year low of 1.0635 again.
Overall, EURUSD is turning the short-term neutral mode to bullish but a successful jump above the 1.1240 barrier could be a signal for more upside pressures in the short- and medium-term timeframes.