HomeContributorsTechnical AnalysisEURUSD Meets 200-Period SMA and Tests 0.9900

EURUSD Meets 200-Period SMA and Tests 0.9900

EURUSD is underperforming after the pullback off the 200-period simple moving average (SMA) around 0.9920. The pair is approaching the near-term uptrend line near the 0.9900 psychological mark and the 20-period SMA. The RSI is sloping south in the bullish area; however, the stochastic is still moving higher after the bullish cross within the %K and %D lines.

Should weakness extend below the uptrend line, support to downside movements could be initially detected within the 0.9835 barrier. Clearing that zone, the next stop could be around the 50-period SMA at 0.9765 and the 0.9735 support.

Alternatively, the pair needs to overcome the 200-period SMA to meet a key barrier between the parity level. The 1.0150 mark could act as resistance too before the 1.0186-1.0200 restrictive region.

In the short-term picture, the sentiment turned bullish after the price rebounded off the 20-year low of 0.9535. The positive slope in the 20-period SMA, which moves closer to the 200-period SMA, also adds optimism for a brighter outlook.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading