- EURUSD rebounds off 1.0875
- 50- and 200-SMAs post golden cross
- Price is still well above uptrend line
EURUSD is rising somewhat after the pullback off the 1.0875 support level and has been battling with the 20-day simple moving average (SMA) over the last four sessions.
It is worth mentioning that the 50- and the 200-day SMAs posted a golden crossover suggesting more gains in the next few sessions, while the technical oscillators are contradicting each other. The RSI is pointing slightly up above the neutral level of 50; however, the MACD is holding beneath its trigger line and above the zero level, indicating that the bearish correction from 1.1150 may continue.
If the bulls continue to have control, then the market could touch the 1.1150 barrier, taken from the previous peak ahead of the 17-month high of 1.1275, registered back in July 2023.
Alternatively, a potential drop below the immediate 20-day SMA and the 1.0875 barricade could send the market until the important 200-day SMA at 1.0840 ahead of the medium-term ascending trend line near the 1.0825 support. Penetration of these lines may change the outlook to bearish, leading the price towards the 1.0720-1.0755 restrictive region.
All in all, EURUSD is looking bullish in the medium-term outlook and only a fall below the uptrend line may switch the outlook to negative.