EURUSD has hardly gained ground above the 15-month low of 1.1523, although the recent weak bullish effort could see further extension above the 1.1665 strong resistance level. The RSI indicator is trying to improve above the neutral threshold of 50 and the MACD oscillator is moving above its trigger and zero lines.
If the favorable scenario comes to fruition, the 1.1665 barrier may be the first to attract interest. This is also close to the 40-day simple moving average (SMA), which is at 1.1690, and the 23.6% Fibonacci retracement level of the down leg from 1.2348 to 1.1523 at 1.1715. A break of this level might send the price up to the 38.2% Fibonacci level of 1.1835, while a break of the 200-day simple moving average (SMA) at 1.1910 could spark some further buying interest.
If the bulls lose the battle and the price falls below the 1.1523 trough, immediate support could form around the barrier of 1.1450, which was last active in June 2020. Below that point, traders may look for support for 1.1365.
In the long-term, only a sustained move above the critical resistance level of 1.1665 and more specifically, a daily close above the 200-day SMA would break the negative trend.
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