Home ForexForecasts EUR/USD finds support at the 200-day SMA

EUR/USD finds support at the 200-day SMA

by SuperiorInvest
  • had been within range before sliding down
  • But the pullback stops at the 200-day SMA.
  • Momentum indicators remain tilted lower

The EURUSD had been trading sideways since the beginning of the year following its pullback from the December high of 1.1138. The pair spiked lower on Tuesday, but the congested region that includes the 200-day simple moving average (SMA) and the top of the Ichimoku cloud rejected further pullbacks.

Considering that both the RSI and Stochastic are deep in their negative zones, the price could revisit its recent support of 1.0843, which overlaps with the 200-day SMA. By breaking through that wall, the pair may challenge the December low of 1.0722. Even lower, the 1.0634 barricade could provide downside protection.

On the other hand, if the pair turns higher, the November resistance of 1.0964 could prove to be the first barrier for the bulls to overcome. A breach of that territory could pave the way towards the November high of 1.1016. Later they could find resistance at the April high of 1.1094.

In summary, EURUSD has lost some ground in the short term, but the 200-day SMA prevented a sharp decline for now. Therefore, the bulls could continue to wait for a recovery as long as the latter remains strong.

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