Sat, May 08, 2021 @ 15:36 GMT
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EURUSD Advances Freeze ahead of 1.2000 Mark

EURUSD has significantly improved extending above the simple moving averages (SMAs), yet it has come just short of the 1.2000 psychological number. The near-term rally, which found footing at the five-month low of 1.1703 has now retreated from the durable resistance of 1.1990. However the Ichimoku lines suggest that positive momentum has not yet abated. Furthermore, the bullish overlap of the 200-period SMA by the 50-period one and the gradual upturn of the 100-period SMA, together are endorsing extra price gains.

The short-term oscillators are conveying mixed signals in directional momentum. The MACD, far above zero, has barely dipped below its red trigger line, while the RSI is trying to gain ground in the bullish territory. The stochastic oscillator is mirroring the price pullback but the negative momentum seems unconvincing to overturn the bullish tone.

If negative pressures strengthen, support could originate from the 1.1948 barrier and the blue Kijun-sen line at 1.1932, before the 50-period SMA – currently at 1.1900 – comes into focus. Should selling interest persist, the 200-period SMA at 1.1885 and the adjacent support base of 1.1860-1.1878 may try to rescue the positive pattern. Failing to do so, the 100-period SMA at 1.1834 and the cloud may then draw focus ahead of the 1.1786-1.1800 boundary.

If buyers manage to overcome the 1.1990 resistance and 1.2000 mark, the next upside limitations may emanate from the region of 1.2026-1.2053. Conquering this too could shoot the pair towards the 1.2100-1.2112 barrier.

Overall, EURUSD is sustaining a positive tone above the 1.1860-1.1878 support and the positive aspect of the SMAs could boost upside impetus.

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