EUR/USD currency pair enjoyed a thrilling trading session. It found an intraday low of 1.1357 before it started to rise quickly from the open of the American trading session. While the duo is on a positive trajectory, it is not out of the woods yet. Moving above the mildly bullish 20 Simple Moving Average (SMA) confirms the Forex market is still a big-cautious place.
On the trading day EUR/USD traded mostly below the 20 SMA. This 200-day moving average is an important support and resistance indicator for all traders and investors. The pair has since begun to trade in the lower half of Monday’s range. This predicament continues to persist despite strong upward momentum, high above all of its moving averages.
Investors are closely watching EUR/USD as it is poised to extend its gains. It must overcome the resistance barrier at 1.1420 to lock in additional intraday profit potential. If it is able to prevail, the follow-up targets lie at 1.1460 and 1.1505. On the other hand, resistance levels are solid at 1.1420, 1.1450, and 1.1470. The 20 SMA is indispensable, providing key support close to the 1.1270 area.
EUR/USD – Bullish Technical Indicators are a Bullish Sign for EUR/USD. Luring speculative interest is proving elusive as we hold out hope for the first-tier economic data to greenlight the go-ahead. The market seems to be adopting a cautious stance, which could impact trading volumes and volatility in the short term.
Traders expect the 100 SMA to continue to rise above the 200 SMA, which is an indication of bullish long-term sentiment. They point out a big chasm between these longer term averages and the much shorter 20 SMA. This huge gap means that short-term trends can seem much better than they are. Underlying currents remain that could lead to abrupt price swings.
As market participants await forthcoming data releases which could shape monetary policy expectations and influence currency movements, the EUR/USD pair retains a bullish bias overall. Certainly, volatility can be high as traders for the first time react to new information which could result in reversal of current trends and momentum.