Although paused, conveys robust upside risks

William Arsn

EURUSD maintains a solid bullish mode, despite appearing stuck within the confines of 1.1695 and 1.1965. The Ichimoku lines are broadcasting a positive bearing regardless of the recent stalling in the red Tenkan-sen line. Likewise, the progressing simple moving averages (SMAs) command a resounding bullish bias.

Additionally, the short-term oscillators suggest positive momentum is improving. The MACD, deep in the positive section, is below its red signal line but looks set to reclaim it, while the RSI is nearing the 70 mark. Furthermore, the positive stochastic oscillator is voicing extra advances as it heads towards the 80 level.

To the upside, early resistance may develop from the upper boundary of this temporary range in the pair, at the 27-month peak of 1.1965. Hovering overhead, the 1.1995 high near the 1.2000 psychological number from May of 2018, could prove to be a tough obstacle to overcome. Gaining further ground, the price may target the 1.2055 barrier before shooting for the 1.2138 – 1.2154 resistance section. If buyers persist, they could stretch towards the 1.2244 high identified back in April of 2018.

If sellers re-emerge, initial obstructions may arise from the Ichimoku lines at 1.1854 and 1.1804 respectively, ahead of the 1.1754 low. Subsequently, a fortified floor of this somewhat sideways move around the 1.1700 handle and the cloud’s upper surface, may prevent further declines undermining the positive incline. Should sellers manage to dive below this support trench from 1.1710 to the 1.1682 level, that being the 23.6{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} Fibonacci retracement of the up leg from 1.0766 to 1.1965, the pair may test the 50-day SMA, currently at 1.1600. Plummeting further, the 38.2{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} Fibo of 1.1505 could come into play ahead of the 50.0{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} Fibo at the 1.1368 trough.

In brief, EURUSD maintains a potent bullish bias above the SMAs and the 1.1710 level.


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