EURUSD has found fresh traction off the minor tentative uptrend line, pulled from the 1.1703 trough, and the mid-Bollinger band, both in the vicinity of 1.2083. The slight upturn in the 50-day simple moving average (SMA) combined with the rising 200-day SMA, are together endorsing price improvements, while the 100-day SMA has yet to regain its positive demeanour.
Despite mixed signals in directional momentum, the short-term oscillators seem to be tightening downside defences that lie between the mid-Bollinger band and the 100-day SMA. The MACD, in the positive region, is persisting above its red trigger line, while the ranging RSI is struggling to strengthen in the bullish territory. The stochastic oscillator has reclaimed a positive charge and is promoting optimistic developments in the pair.
Should the price continue to adhere to the near-term tentative uptrend line, early upside constraints could arise from the upper Bollinger band currently around 1.2181. Stretching past this, buyers may face a resistance band from 1.2222 to 1.2242. If this aforementioned obstacle fails to keep buyers at bay, the pair could then gain impetus to test the 32½-month top of 1.2349. Restoring the broader bullish bearing, buyers may meet the tough resistance belt of 1.2400-1.2413, the latter being a level where the price plummeted back in April 2018.
If sellers take control and dive underneath the ascending line, a zone of support could develop from the mid-Bollinger band until the 100-day SMA at 1.2030. More importantly, failure by the neighbouring support base of 1.1942-1.2000 to dismiss a deeper retracement could undermine price advances. The next downside barrier could then come in at the 1.1860 level.
Concluding, EURUSD’s latest rally off 1.1703 is sustaining a healthy upward trajectory. However, a retreat below the diagonal support and the 1.1942-1.2000 boundary could strengthen negative tendencies.
