Wed, Dec 07, 2022 @ 13:35 GMT
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EURUSD Bulls Look Exhausted Near 1.0400

EURUSD is weakening somewhat after the climb towards the 1.0450 barrier, which is a level slightly above the 200-period simple moving average (SMA) in the daily chart. Currently, the market is retreating near the 1.0400 psychological mark with the technical oscillators losing steam. The RSI has pulled back from the overbought region, while the MACD is continuing to move in the positive area with weak momentum.

Still, the market seems to be well supported by the short-term SMAs around 1.0315-1.0340 and therefore only a decisive close below them would put the pair on the backfoot. Moving lower, the price should first breach the 1.0220 support and the 1.0095 inside swing high from November 8. Clearing that obstacle too, all attention would turn to the 200-period SMA at 1.0000.

Alternatively, if the bulls dominate above 1.0400, the spotlight will shift back to the 1.0450-1.0480 resistance zone, a break of which could extend the short-term uptrend towards the 1.0600 mark, taken from the peaks on June 27.

In brief, EURUSD is expected to hold an upward direction unless the price closes significantly below the 200-period SMA near the parity level.

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