EURUSD remains steady in the near term after stalling a rally just under the key 1.2100 level. The overall outlook remains bullish as the 50-day and 200-day moving averages are bullishly aligned.
Upside momentum has started to fade as prices struggle to rise past the 1.2091 peak that was hit in September 2017.
The resistance level at 1.2100 will likely be a challenge to break but while short-term price action looks a little soft for now. However, both the RSI and the Stochastics are pointing to the downside, suggesting that weakness in prices cannot be ruled out in the near-term. Yet, underlying trend remains bullish.
EURUSD is expected to remain well supported on dips and the key level at 1.2000 is now seen as strong support, which has held for several days now. Consequently, a consolidation phase has been forming.
The risk of a move lower is limited but if EURUSD fails to regain upside momentum to break 1.2100 soon then the risk of a drop would increase quickly.
