In the process, the EUR/USD pair recovered from Friday’s low of 1.0797. It rose as high as 1.0858, signaling modest gains. The generally optimistic market sentiment pushed US futures sharply higher ahead of the open. This rise in dollar demand faced massive downward pressure on the US dollar. The pair continues to trade above its moving averages, indicating a potential for further gains, although near-term sellers are emerging around the bearish 20 Simple Moving Average (SMA).
The EUR/USD pair continued its recent strength by closing above all major moving averages. The 100 and 200 SMAs are rising consistently. They are still trading just shy of it so far, with the underside being given dynamic support around the 1.0780 area. A bullish 20 SMA crossed above a flat 200 SMA at around 1.0745. This action has provided an excellent short-term support zone for the pair.
With near-term demand for the US Dollar established in the early American session, this had a modest impact on pushing the EUR/USD pair lower. The pair continues to trade with slight gains near the 1.0840 area. The power of their resilience should not be understated, even despite changes in global demand for the US Dollar.
The technical EUR/USD indicators are still in negative territory and with neutral-to-bearish slopes. This is indicative of the improvement that has been made in the corridor and supports the argument for potentially getting those lower lows on a daily basis. Resistance comes in at 1.0860, followed by 1.0905 and 1.0950. Support is seen at 1.0830, 1.0785, and then 1.0745.
"German business activity rose at the quickest rate for ten months in March, amid a first increase in manufacturing production for almost two years," an official report noted.
This remarkable development would further contribute to keeping Euro strong against US Dollar. These national-level implications are perhaps made most acute with conditions in Germany, the Eurozone’s hegemon.
The EUR/USD pair’s interesting support under its moving averages being held onto, is interesting. The 20-day simple moving average (SMA) has crossed above the now-flat 200-day SMA at roughly 1.0745. This bullish crossover lays an excellent foundation for possible powerful bullish momentum. With near-term sellers establishing short positions at or near the bearish 20 SMA, upward movement should run into some resistance.