The EUR/USD currency pair has logged advances for a second day running, an indicator of positive market sentiment. During the last trading sessions, the pair is trading under a horizontal 20 Simple Moving Average (SMA). This SMA is now at ~1.1700. Analysts are watching this line like hawks. If it does break through, that could be interpreted as an early sign that the euro has further to climb against the dollar.
In spite of the recent bullish trend, the EUR/USD is still forming underneath the 20 SMA. This is in contrast to the 100 SMA which is still considerably lower than current trading levels. This divergence reinforces the bullish trend we are observing in the pair. The more longer-term moving average is around 1.1705. This level forms a strong resistance zone that buyers have to push past to make more meaningful gains.
In the short term, market analysts forecast a bullish trend for the euro to US dollar pair. In order to confirm this bullish move, the currency pair needs to break above the 1.1700 level. A decisive break above this point would validate bullish continuation, with the majority of traders looking for the euro to maintain its strength.
The 4-hour chart confirmation supports this bullish sentiment. Confirmation that the EUR/USD is trading back above the somewhat bullish 20 and 200 SMAs, which are fanning out positively. Moreover, technical indicators reflect positive momentum and increasing bullish momentum, indicating that the pair is set up for further gains if things continue the way they are.
We have seen recently, EUR/USD make higher highs above last week’s highs, showing strong demand for the euro. This bullish advance has created new support tiers at 1.1635, 1.1600, and 1.1560. These levels act as important reversion points that can offer support if any pullbacks happen.
Watch resistance levels at 1.1710, 1.1755, and 1.1790. Traders need to watch these levels like a hawk. Even a shift in this direction poses a huge risk to the market narrative.
Market participants are bullish on the EUR/USD’s continued performance, motivated by a mixture of strong technical signals and market sentiment. With the pair nearing key resistance zones, traders should be on high alert. Get prepared to act with any new market opportunity that may arise!