Tuesday’s softer tone in the EUR/USD cross showed the consolidative, wait-and-see theme still in play. The currency pair is currently trading in the 1.1320 area as the early American session gets underway. More importantly, it remains comfortably above all of its moving averages. Even with continued weakness in the US Dollar, selling pressure has come back around the key psychological support level at 1.1300.
At the moment, the EUR/USD continues forming an advance in a strongly bullish trend guided by the 20 Simple Moving Average (SMA). The three-day simple moving average is starting to cross higher above the 100 and 200 SMAs as well. That points to robust near-term upward trajectory. The recent price action suggests we might be in a transition. If you feel like this pair is overdue for a minor correction, you may be right.
When focusing on the 100 and 200 SMAs, analysts have noticed a recently developed subtle upward trend. This key change increases the overall bullish sentiment around the pair. The expected slide appears to be short-lived. The US Dollar is not very strong and can’t gain any traction, despite its recent rally.
The melioristic tone of the EUR/USD pair is interesting, particularly in light of the persistent history of USD Dollar weakness. This latest dynamic is just the tip of a complicated interaction between market feelings and economic signs that are pushing currency values higher or lower. As traders continue to grapple with these complex conditions, all eyes are still on important support levels and looming resistance levels.
The EUR/USD pair has its work cut out for it, the pair must hold above the 1.1300 mark to keep its bullish outlook alive. Given the current market sentiment we see no shortage of short-term selling pressure. As long as this support level holds, the overall trend continues to be positive.