EUR/USD in bullish mood but caution still needed
|EURUSD is pushing hard to enter the 1.13 neighbourhood and pierce its 50-day simple moving average (SMA) after a bullish week. Technically, the risk seems to be skewed to the upside as the RSI is holding a positive slope above its 50 neutral mark and the MACD continues to distance itself above its red signal line. With the stochastics however fluctuating near overbought territory, gains could come limited.
Should the pair overcome the 23.6% Fibonacci of 1.1326 of the downleg from 1.1814 to 1.1175, the focus will shift straight up to the upper surface of the Ichimoku cloud, near 1.1370. Clearing the cloud, the bulls would aim for the 200-day SMA currently at 1.1440 but the 38.2% Fibonacci of 1.1420 could prove a hurdle as in previous sessions.
On the downside, support could immediately appear near 1.1268 which if broken could send the price down to the 1.1200-1.1175 restrictive zone. Beneath the latter, the sell-off could pick up speed towards 1.1060, a frequently tested level in 2016.
In medium-term picture, EURUSD is in a downtrend since early January and only a decisive close above the 200-day SMA could increase hopes for a bull market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.