EURUSD is holding within a tight range of 1.0635 to 1.0780 after surpassing of the 20- and 40-day simple moving averages (SMAs). The RSI is moving sideways above the neutral threshold of 50, while the MACD is extending its bullish movement above its trigger and zero lines.
Should the price close comfortably above the 38.2% Fibonacci retracement level of the down leg from 1.1480 to 1.0345 at 1.0780 and the medium-term descending trend line, traders could add move value to the pair, pushing the market up to the 50.0% Fibonacci of 1.0920 and the 1.0940 resistance. The 61.8% Fibonacci of 1.1055 has been a strong resistance and therefore should be in focus.
In the negative scenario where the 20-day SMA halts upside movements, the market could retest the 1.0635 support and the 23.6% Fibonacci at 1.0615. If these prove easy to overcome this time, the decline may next pause somewhere near the more-than-five-year low of 1.0345.
In brief, EURUSD is in a neutral mode in the very short-term timeframe and bearish in the bigger picture.
