EURUSD buyers have re-emerged again around the previous low of October 12 at 1.1523 and are trying to recoup lost ground. Despite these positive efforts, the pair is maintaining a strong bearish demeanour, something also being reflected in the falling simple moving averages (SMAs).
The Ichimoku lines are demonstrating the price’s recent unclear direction but are indicating that positive impetus is somewhat lacking. The short-term oscillators are conveying the recent pick up in positive momentum, but this remains shaky. The MACD, in the negative region, is a tad beneath its red trigger line, while the RSI is hovering in bearish territory. The stochastic oscillator’s positive charge appears to be struggling, signalling that upside forces could become overwhelmed.
If buyers retain the reins, initial resistance could commence from the converged Ichimoku lines around 1.1600 and the neighbouring 1.1616 high. Additional advances may then face upside limitations within the region of the 50-day SMA at 1.1665 until the 1.1692 high. Conquering the Ichimoku cloud, which overlaps the previous barrier, the bulls could then test the 1.1734-1.1769 resistance section, the former being the 100-day SMA. Should upside momentum bolster, the price may then test the 1.1845 obstacle before targeting the fortified border of 1.1882-1.1908.
Otherwise, if selling interest increases, downside constraints could evolve from the 1.1523 low and the nearby support barricade of 1.1451-1.1496, which involves the March 2020 high of 1.1496. Should the downward trajectory accelerate, a dive in the price may snag around the 1.1370 low before the focus turns towards the 1.1254 trough.
Summarizing, EURUSD remains negatively skewed in the short- and medium-term timeframe. Nevertheless, the pair is fighting to gain ground and for upside forces to intensify, the price would need to elevate above the 1.1692 high and the cloud.
