EURUSD is tackling the 1.1302 resistance, suggesting that positive sentiment may be picking up in a sideways market that has held since the pullback from the 1.1421 peak. In spite of this pause, the positive picture has managed to remain intact, something also reflected in the Ichimoku lines and the bullish bearing of the 50- and 100-day simple moving averages (SMAs).
Additionally, the short-term oscillators sponsor a neutral-to-bullish picture. The MACD, in the positive area, is ready to reclaim its red signal line, while the RSI is pointing slightly upwards above its 50 mark. The increasing stochastics also promote advances as the lines head towards the 80 level. Noteworthy, is the approaching bullish crossover of the 200-day SMA by the 100-day one, which could boost a positive move.
To the upside, nudging past the 1.1302 barrier, resistance could arise from the high of 1.1353 ahead of the three-month peak of 1.1421. Should confidence endure, the bulls may challenge the 13-month top of 1.1496. Overrunning this top could encounter immediate resistance from the 1.1514 obstacle, ahead of climbing to the 1.1569 barrier, both of which stem back to January of 2019.
In the event sellers take control, first limitations could occur from the 1.1267 level, that being the 23.6% Fibonacci retracement of the up leg from 1.0766 to 1.1421. Steering lower, the 38.2% Fibo of 1.1171 and the upper surface of the cloud – residing near the low of June 19 – may apply the brakes to the decline. If these fail to do so, the 1.1146 border could come next in their defence. If sellers plunge further, the area from the 50.0% Fibo of 1.1094 until the 61.8% Fibo of 1.1016 could prove difficult to conquer.
In brief, the very-short-term bias remains neutral above 1.1146. If the bulls manage to break above 1.1496, this could see a bullish bias unfold in the short-to-medium-term timeframe.
