EURUSD is losing momentum after the climb towards the 1.0970 resistance level, dropping back below the 1.0900 psychological mark. In the medium-term timeframe, the pair is consolidating within a range, with upper boundary 1.0970 and lower boundary the 1.0530 barrier. However, in the longer timeframe, the pair is still bullish as it is holding above the uptrend line, drawn on September 28.
From the technical perspective, the MACD oscillator is holding near its trigger line in the positive region, while the RSI is moving sideways above the neutral threshold of 50.
Should EURUSD make a run higher, it’s likely to meet resistance at the 1.0970 barrier ahead of the crucial 1.1030 resistance, registered on February 2. A successful break above this key area would open the way for the 1.1180, taken from the peak in March 2022.
If prices turn lower, the 20-day simple moving average (SMA) at 1.0808 is the nearest support that could halt steeper declines. A potentially more important support, though, is the 1.0760 inside swing high ahead of the flat 50-day SMA at 1.0720, which stands near the long-term ascending trend line. If breached, it would shift the focus to the downside and prices would slip beneath the 23.6% Fibonacci retracement level of the up leg from 0.9535 to 1.1030 at 1.0680 before slipping towards the 200-day exponential moving average (EMA) at 1.0590, remaining in the neutral zone.
In the bigger picture, EURUSD would need to make a sustained climb above 1.1030 for the outlook to become convincingly bullish.
