HomeContributorsTechnical AnalysisEURUSD Jumps Above 200-day SMA

EURUSD Jumps Above 200-day SMA

  • EURUSD advances after violation of restrictive trendline
  • Reclaims both 50- and 200-day SMAs
  • Oscillators suggest that bullish forces are strengthening

EURUSD has been attempting a recovery from its one-month low of 1.0666, with the price crossing above the downward sloping trendline in place since December 2023. After some volatile sessions, the pair managed to conquer both its 50- and 200-day simple moving averages (SMAs).

Should the recent uptick strengthen, the price could initially challenge 1.0874, which is the 38.2% Fibonacci retracement of the 1.0447-1.1138 upleg. Higher, the June peak of 1.0915 might come under scrutiny. Further advances could then stall around the 23.6% Fibo of 1.0975, a region that curbed the pair’s upside in March.

Alternatively, if the pair falls back below its SMAs, immediate support could be found at the 50.0% Fibo of 1.0793. Failing to halt there, the pair could descend towards the 61.8% Fibo of 1.0711. Even lower, the one-month bottom of 1.0666 may provide downside protection.

In brief, EURUSD has regained some lost ground in the past few sessions, while the break above its SMAs has further improved its short-term technical picture. Nevertheless, a break above its June high of 1.0915 is needed for the bulls to regain confidence for a full-scale reversal.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading