EURUSD bearish to neutral in both the short- and medium-term

EUR/USD has been posting some gains in today’s trading so far and remains above the 1.06 level.

The RSI indicator is below but close to the 50 neutral level at 47. This perhaps indicates that should down movement occur in the short-term, it would be contained. The MACD histogram, which is barely negative and below the red signal line, depicts a similar picture to RSI.

The key 1.07 level is likely to act as resistance to upside moves. Should the price break above it, the February 2 ten-week high of 1.0828 would be eyed (note that this close to the 1.08 level which managed to hold against upside moves a few times in the recent past).

On the downside, the current level of the 50-day moving average (MA) at 1.0594 is likely to provide some support. Should it fail to hold, the February 15 one-month low of 1.0521 would come into scope as next immediate support.

As regards the medium-term picture, the pair recorded a bearish cross in late October when the 50-day MA moved below the 200-day one. However, price action taking place above the 50-day MA for the most part since mid-January is challenging the strength of this signal and is setting a bearish to neutral (rather than a purely bearish) signal.

Overall, the short- and medium-term bias is bearish to neutral.