EURUSD has regained positive momentum, bouncing near the 1.1695 low where the price solidified the start of the recent progress that is heading towards the 26½-month high of 1.1915. Further aiding this move is the slight advancement of the already bullish Ichimoku lines and the recovery in the short-term oscillators.
The MACD, although below its red trigger line deep in the positive region, looks to reclaim it, while the RSI is attempting to penetrate above the 70 mark. Moreover, the stochastic oscillator’s %K line is approaching the 80 level, endorsing more gains. Additionally, the climbing simple moving averages (SMAs) echo the prevailing bullish trend.
If buyers manage to uphold the fresh push higher, initial limitations may stem from the tough multi-year peak of 1.1915. Clearly overtaking this, the pair could encounter the 1.1995 barrier – near the 1.2000 handle – before meeting the inside swing low of 1.2055. Another run up may then face the 1.2138 to 1.2154 resistance border from April 2018.
Otherwise, if sellers take control, early friction may occur at the red Tenkan-sen line at 1.1815 before the 1.1695 to 1.1710 region of latest key lows. Dipping underneath these, the 1.1643 level, that being the 23.6% Fibonacci retracement of the up leg from 1.0766 to 1.1915, and the blue Kijun-sen line not far beneath at 1.1610, may test the decline. Steeper losses may be obstructed by the support zone from the 38.2% Fibo of 1.1475 until the 1.1500 obstacle, which includes the 50-period SMA, ahead of the 1.1370 trough.
Summarizing, the short-term bullish outlook remains intact above 1.1695 and a break above 1.1915 may repower the positive picture.
