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EURUSD Recoups Losses and Bearish Gap after US CPI

  • EURUSD posts gains above 1.0800
  • RSI crosses above 50 level

EURUSD is extending its rebound off 1.0740 after US inflation data that was lower than expected. The pair jumped above the 50- and the 200-day simple moving averages (SMAs) as well as the 1.0800 round number.

Technically, the RSI indicator is currently crossing the 50 level to the upside; however, the MACD is losing momentum beneath its trigger line and near the zero level.

In case buyers hold control and pierce above the short-term uptrend line and the 20-day SMA at 1.0840 that would bring the price towards the 1.0915-1.0940 resistance region. Even higher, the levels to watch would be the 1.0980 barrier and the 1.1000 round number.

On the other hand, if sellers take the upper hand, the first obstacle to the downside might be the 200-day SMA at 1.0785 ahead of the 1.0720 support. A move beneath the medium-term downtrend line could resume the bearish tendency, meeting the 1.0647 zone.

Summarizing, as the price surpassed the 1.0800 level there is potential for an upside recovery; however, a drop back beneath 1.0720 would bring the positive view into doubt. 

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