EURUSD surged during the European afternoon on Wednesday and jumped towards the 1.1900 critical handle, almost reaching a three-week high. For the past two weeks, the euro has been developing within a narrow range between 1.1715 and 1.1862 versus the US dollar and Wednesday’s high was just 40 pips above the range’s peak. Moreover, the price printed the third straight positive day yesterday and the next immediate resistance levels are the 1.1938 and the 1.1960.
Currently, euro/dollar is trading slightly above the 23.6% Fibonacci retracement level, at 1.1865, of the last upward movement with the low at 1.1553 and the high at 1.1960.
On the reverse side, in case of a breakdown below 1.1865, the pair could open the door for the 38.2% Fibonacci level near 1.1800. However, for that to happen the price would also need to go through the 1.1827 support barrier and the 100-simple moving average on the 4-hour chart.
Turning to the technical indicators, in the same short-term chart, the RSI and the MACD are painting a positive picture in the short term. The Relative Strength Index (RSI) is moving near the overbought zone with weakening momentum, whilst the MACD oscillator climbed above its trigger line and is holding in the positive territory. Also, the three simple moving averages (50, 100 and 200) are pointing to the upside following the price action.
Looking on the weekly timeframe, the world’s most traded currency pair is ready to record a bullish week snapping the three previous losing sessions.
