HomeContributorsTechnical AnalysisEURUSD Stretches Range-Bound Trading

EURUSD Stretches Range-Bound Trading

EURUSD closed higher in Friday’s trading but maintained in a range between 1.2150-1.2450 started at the end of February, with technical indicators suggesting that the sideways pattern might continue for a while.

Looking at momentum indicators, the RSI is pointing to the upside, giving some positive signals for the short-term, though, the index has not deviated much above its neutral threshold of 50. Therefore, we expect the pair to improve moderately in the short-term, remaining overall in a range. MACD barely holds in positive territory and is still capped by its red signal line, painting a neutral picture as well.

Should the pair make a step higher, the area between 1.2400-1.2450, which includes February’s highs, could offer nearby resistance before the focus shifts to the three-year peak of 1.2554. A close above this top could see prices rallying towards the 1.26 handle, while a more decisive upside move could open the door to the 1.2700 psychological level as well.

To the downside, if the market weakens, support could come around the area between 1.2336-1.2316 where the 23.6% Fibonacci of the upleg from 1.1553 to 1.2554, and the 50- and the 20-day simple moving average lines are currently located. A leg below this mark could target 1.2240, a frequently congested area since the beginning of the year, while steeper decreases could also revisit the 38.2% Fibonacci of 1.2170. However, only a break below the March low of 1.2153 could trigger bearish extensions, resuming the downtrend from 1.2554.

In the medium-term, the market looks bullish, given that the market maintains its uptrend recorded over the last three months and the bullish cross between the 50-day and the 200-day SMA remains intact. However, the bullish signals could be stronger if prices manage to increase their distance from the 50-day SMA.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
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