The EUR/USD currency pair is trading quietly around the 1.0900 mark on Monday, exhibiting a neutral-to-bullish trend in the near term. While the pair maintains its position above all its moving averages, technical indicators suggest that its upward momentum may be constrained. The daily chart readings indicate a limited bullish potential, with the pair resting just above a flat 20 Simple Moving Average (SMA).
The technical analysis reveals that the 100 and 200 SMAs are positioned well below the 20 SMA, heading firmly higher, which supports a bullish outlook. However, the 100 SMA remains flat, while the 200 SMA is directionless and currently stationed at 1.0725. Despite these mixed signals, the EUR/USD pair continues to develop above all its moving averages, pointing to a sustained upward trajectory.
In the 4-hour chart, the EUR/USD pair is described as neutral-to-bullish, with the 20 SMA extending its advance above a flat 100 SMA. The trading activity is confined to a limited intraday range, with the pair hovering in the area of daily peaks within the 1.0910-1.0915 band. This suggests that while buyers have paused, they still retain control over the currency pair's movement.
The Momentum indicator, however, appears directionless as it hovers around its 100 line. Similarly, the Relative Strength Index (RSI) indicator has modestly turned lower, currently standing at approximately 58. These indicators reflect a lack of strong directional momentum, adding to the mixed signals regarding further bullish potential for the EUR/USD pair.
Support and resistance levels have been identified for the EUR/USD pair. Support is found at 1.0870, 1.0820, and 1.0790, providing a cushion against potential downside movements. On the upside, resistance levels are pegged at 1.0925, followed by 1.0960 and 1.1000, which could pose challenges to further gains if the pair attempts to break higher.