EURUSD appears to be fading somewhat from its recently logged 31-month high of 1.2177. That said the rising simple moving averages (SMAs) are defending the dictating bullish structure, keeping additional advances on the table.
The short-term oscillators reveal the pause in bullish momentum. The MACD, deep in the positive region, is marginally easing above its red trigger line, while the RSI, although dipping under the 70 mark, is persisting above the supportive trend line. Yet, the stochastic oscillator’s %K line is confirming a bearish charge, which could see a pullback towards the 1.2000 handle occur, before positive price action resumes.
Continuing to retreat from the 1.2177 high, the pair may find initial limitations from the 1.2055 barrier from April 2018, before encountering the support belt of 1.2002-1.2010. Sliding further, sellers may meet the 1.1919 low before facing a critical support region from the 50-day SMA at 1.1831 until the 1.1745 trough, which is also encompassing the 100-day SMA and the 1.1800 border.
On the other hand, if buyers re-emerge and drive the price back up, early resistance may come from a revisit towards the multi-month top of 1.2177. Overrunning this, the pair may see upside friction develop at the 1.2244 obstacle and the 1.2300 hurdle. Should further gains continue to unfold, the bulls may challenge the 1.2400-1.2413 resistance band from April 2018, before positive drive nudges the pair towards the 1.2475 peak from March of 2018.
Summarizing, EURUSD conveys a positive outlook above the 1.1600-1.1622 foundation and the SMAs. Diving below 1.2000 could trigger a deeper pullback to the key zone of 1.1745-1.1800, while a break above 1.2177 could boost the pair’s confidence.
