EUR/USD Price Analysis: Bulls remain favored despite intraday setback
- EUR/USD trades near the 1.1350 zone, dipping slightly during Wednesday’s session after earlier gains.
- The broader bullish bias remains intact, supported by strong positioning of short- and long-term moving averages.
- Key support lies at 1.1265 and 1.1212, while resistance levels appear around 1.1354 and 1.1390.
After the European session on Wednesday, EUR/USD was seen moving lower toward the 1.1350 area, retreating modestly from earlier highs. Despite this intraday softness, the pair maintains a bullish outlook, largely supported by the positioning of its moving averages. Technical indicators such as the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD), and the Commodity Channel Index (CCI) provide a more cautious tone, suggesting the current dip may be part of a healthy correction within the broader trend.
The 20-day SMA at 1.1265 continues to offer immediate support, while the 100-day and 200-day SMAs—both trending higher—reinforce the longer-term bullish case. The 30-day EMA (1.1162) and 30-day SMA (1.1113) also validate the upside structure. However, momentum indicators reflect hesitation: the RSI hovers just below overbought territory, the MACD shows a slight bearish divergence, and both the CCI and Bull Bear Power remain neutral.
Support levels to monitor include 1.1265, 1.1258, and 1.1212. On the upside, resistance is capped near 1.1354, with additional hurdles at 1.1377 and 1.1390. As long as EUR/USD holds above its key moving averages, the bullish narrative remains valid despite near-term consolidation.
Daily Chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
