EURUSD re-entered the 1.1800 area to touch the bearish cross within the 40- and 200-period simple moving averages (SMAs) in the 4-hour chart after bouncing near the key 1.1753 level. The technical indicators feeding prospects for a possible positive short-term trading. The RSI climbed above the 50 level, while the MACD continues to strengthen above its trigger line in the negative territory.
A failure to overcome the SMAs could send the price down to 1.1753, a challenging point over the last month. Lower, support could be next found around the 1.1695 barrier, a break of which could stage a steeper sell-off towards 1.1625.
Alternatively, if SMAs prove easy to get through, the spotlight will turn to the 1.1865 resistance. On top of that, the bulls would need to clear the two-and-a-half year high of 1.2010 to put the market back on a positive path in the medium-term picture.
To sum up, in the short-term, the outlook remains neutral and traders should be waiting for a clear upside rally.
