EUR/USD Price Analysis: EUR/USD moves above the 200 weekly SMA and the price printed at its highest level in over a month
- EUR/USD is trading 0.64% higher on Monday as global risk sentiment drives on.
- The dollar has struggled against all of the majors bar GBP.
EUR/USD weekly chart
EUR/USD is one of the best-performing currencies on Monday as the pair moves over 0.60% higher. In general, the euro is having a great day as EUR/JPY rises 0.86% and EUR/NZD pushes 0.74%. The single currency is the pick of the bunch as Brexit woes hit the pound and the US continues to deal with the coronavirus pandemic. Risk sentiment is also important as there were large inflows into the greenback during the initial COVID-19 panic.
Looking at the chart below the price has now conclusively broken above the 200 weekly Simple Moving Average. This is not the first time as you can see some of the shadows (wicks) have penetrated the resistance only to fall back below. Obviously we will have to wait till the end of the week to see if the bulls can sustain this momentum but the signs are good at present.
Another key feature on the chart it the price breaking the trendline which has been in place since the peak back in February 2018. The trendline has been tested twice but once again the bulls could not manage to keep hold of the area and the subsequent move took the price below the resistance. There is also some bullishness in the indicators. The MACD histogram is green and the signal lines have crossed the mid-point. While the Relative Strength Index is now holding pretty nicely above the 50 area.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
