Tue, May 30, 2023 @ 07:14 GMT
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EURUSD Buyers Target 1.06 Handle

EURUSD’s fresh positive traction is struggling to surpass the upper Bollinger band residing within the 1.0563-1.0600 resistance region. Despite the pair’s newfound buoyancy extending beyond the sliding 50- and 100-period simple moving averages (SMAs), all the SMAs are promoting the bearish bearing.

The short-term oscillators have yet to reflect any clear weakness in the driving positive forces in the pair. The MACD, slightly north of the zero threshold, has lifted back above its red trigger line, while the improving RSI is heading for the 70 overbought barrier. Furthermore, the positively charged stochastic oscillator is implying that positive price action remains robust.

For the positive scenario to develop further, the bulls would need to initially climb beyond the 1.0563-1.0600 barricade, reinforced by multiple highs and the upper Bollinger band. Not much higher, the 1.0634-1.0666 obstacle and the approaching 200-period SMA overhead may try to test buyers’ efforts to overrun the 1.0700 and pilot for the 1.0738 high and the adjacent 1.0756-1.0800 resistance section that extends back to the May 2020 region of lows.

If buying pressures fade back below yesterday’s high of 1.0563, a support zone could transpire from the 100-period SMA at 1.0512 until the 50-period SMA at 1.0485. If selling interest intensifies and sinks the price past the 1.0459 border, the bears may then aim for the lower Bollinger band at 1.0407 and the 1.0388 low. Remaining heavy, the pair may revisit the 1.0340-1.0366 multi-year support region, moulded by troughs back in January 2017.

Summarizing, EURUSD downside risks continue to linger with the broader outlook advertising a sturdy bearish trend. Yet, buyers are pushing back and a climb in the price above the 1.0634-1.0666 barricade could reinforce a growing positive vibe in the pair.

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