The EUR/USD currency pair is currently testing its intraday high, reaching 1.0799, as it navigates a complex web of technical indicators. On the daily chart, buyers have rushed into the pair for the second consecutive day. They are attracted to the flat 200 Simple Moving Average (SMA) at 1.0730, which provides dynamic support. Yet even with this support, the EUR/USD pair has an uphill battle ahead. It needs to battle a neurotic bearish 20 SMA while attempting to bust through a bullish 20 SMA.
The 100 SMA is still moving horizontally and well below the current EUR/USD pair price. It loses upside momentum as it nears the 1.0840 price region, which suggests resistance lies on the way up. The Momentum indicator has recently plateaued just under the centered 100 line. This agnostic position provides scant guidance for investors.
One of the other technical indicators we’ve been following—the Relatives Strength Index (RSI)—has turned up and is now at 56. This trend suggests that more risk may be on the rise. It’s not enough to outright rule out that the EUR/USD pair will make additional advances. Now as the duo moves towards the more psychological 1.0800 level, short-term sellers have entered the scene, increasing the downward momentum.
The U.S. dollar index traded lower on Thursday, providing the EUR/USD some friendly relief. This move freed the duo from a weeks-long floor of 1.0733. Nevertheless, in spite of this rebound, the duo is still under their respective midlines, indicating continued market volatility and mixed technical signals.
Within the shorter timeframe, technical indicators across the 4-hour chart confirm a degree of progress but are still under their respective midlines. It just means that there is some upward momentum. That still isn’t enough to rule out a persistent turnaround quite yet.
All-in-all, the EUR/USD pair is steering through a very tricky landscape with plenty of technical indicators showing conflicting signals. It has found dynamic support in the shape of the 1.0730 neckline for the last two days. Still, it remains under strong pressure from nearby sellers and a bearish 20 SMA. Unfortunately, the directionless nature of the 100 SMA is contributing to an unclear outlook. So, just like those other examples, it’s a sign that there’s no definitive trend momentum.