EURUSD is piloting higher within a nine-week sideways market after having found some traction off the 50-day simple moving average (SMA). Despite the flattening 50-day SMA, which is endorsing the consolidating picture, the SMAs are sustaining their bullish demeanour, promoting more improvements in the pair.
The short-term oscillators also transmit an increase in positive sentiment. The MACD is growing above its red trigger and zero lines, while the RSI is climbing in bullish territory. Furthermore, the stochastic oscillator encourages positive price action with its %K lines’ push above the %D line.
In a positive scenario, following initial friction from the area of previous highs, buyers face the tough resistance ceiling of 1.1919, coupled with the upper Bollinger band. Successfully pushing over this key level, the 1.1965 border may come into play ahead of the 28-month peak of 1.2010. Traversing higher, the 1.2055 obstacle from April 2018 may impede the price from extending towards the buffer zone of 1.2138-1.2154.
Otherwise, steering lower sellers may hit early support at the mid-Bollinger band and 50-day SMA, currently at 1.1790 and 1.1770 respectively. Dipping past this, the 100-day SMA at the 1.1707 level, which is the 23.6% Fibonacci retracement of the up leg from 1.0726 to 1.2010, may bare its teeth. Shifting beneath this critical mark too, the bears may aim for the lower Bollinger band at 1.1648 and the vital base of 1.1600-1.1612. Should the foundation of that base crumble, the pair may slip towards another support section from the 38.2% Fibo of 1.1519 until the 1.1496 high from March 9.
Summarizing, a neutral-to-bullish bias is commanding the pair in the short-term picture, should the pair remain above the SMAs, mid-Bollinger band and the neighbouring 1.1745 low.
