The EUR/USD currency pair has been trading bullishly above their 20 and 200 Simple Moving Averages (SMAs). This movement is a sign of a more multi-faceted market sentiment. Even with this bullish advance, the pair does not seem to have any clear-cut strength of direction just yet. In the most recent trading session, EUR/USD is challenging a modestly bearish 20 SMA. This is an indication that it’s still a buyer’s market, although that buyer momentum might be losing steam.
In European trading hours, EUR/USD reached a high at 1.1284 and held near that figure as the American session opened. That being said, according to currency analysts, a horizontal 100 simple moving average (SMA) is limiting further bullish movements for the forex pair. This has allowed buyers to remain above the 50-day and 200-day moving averages. With resistance levels likely to be high, we may face obstacles to further progress.
On the downside, the next support levels for EUR/USD are at 1.1245, 1.1200, and 1.1160. On the flip side, traders will be watching resistance levels at 1.1290, 1.1335, and 1.1370 to see how the market may react.
The US macroeconomic calendar is empty of notable economic indicators which would normally move markets and determine trading strategies. This lack of readily available, relevant data may be a factor in the current market hesitation. Several Federal Reserve (Fed) governors are scheduled to appear in public. Each of their comments has the potential to heighten volatility in the US Dollar, which is in a general downtrend against its major counterparts.
Against the USD, the bullish tone on the EUR/USD pair is being supported as the USD slips at the start of the week. The small upward angles of the 100 and 200 SMAs show that buyers are still in control of this market. Even despite this recent slowdown, this holds true.
With traders watching closely as the situation develops, focusing on technical indicators along with broader economic indicators will be key. EUR/USD forecast The dynamic between support and resistance levels will surely determine the short-term path of EUR/USD.