Wed, Feb 08, 2023 @ 00:31 GMT
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EURUSD Shows Positive Signs above 1.0500

EURUSD advanced above the 1.0500 in the previous couple of sessions, suggesting that the market is in a bullish mode in the short-term timeframe.

Regarding the trend, it is likely to remain on the upside as the price continues to stay above the 200-day simple moving average (SMA). The MACD oscillator is strengthening its bullish momentum above its trigger line in the positive region; however, the RSI is holding near the overbought territory, suggesting some losses.

An extension to the upside could meet the 1.0620 resistance level ahead of the next obstacle of 1.0780, taken from the high on May 30. Further up, resistance could run towards the 1.0900 psychological mark.

On the other hand, if the pair weakens, the 200-day SMA and the 20-day SMA around 1.0355 could provide immediate support ahead of the 1.0200 barrier. Even lower, the 1.0100 and the 1.0000 round numbers could worsen the outlook to bearish, opening the way towards the 0.9730 level.

In the long-term picture, the bearish sentiment changed after the jump above the 1.0500 handle and the 200-day SMA. Any moves below those levels may switch the outlook back to bearish.

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