Technical Analysis – EURUSD records new 8-month high
EURUSD stands well above 1.1000
50- and 200-SMAs create bullish cross
Stochastic still moving higher
EURUSD is flying to a fresh eight-month high of 1.1088 continuing the bounce off the 1.0950 support level. Currently, the market remains well above the long-term descending trend line, endorsing the view for a bullish structure in the near term.
From the technical perspective, the stochastic oscillator is gaining momentum above the 80 level, while the RSI is trying to cross the 70 to the upside but is losing some steam, mirroring the latest downside reversal. Additionally, the 50- and the 200-day simple moving averages (SMAs) posted a bullish crossover in the short-term view.
Should EURUSD make another run higher, it’s likely to meet resistance at 1.1140, taken from the highs on December 2023. A break above this key resistance would drive the bulls until July’s 2023 top of 1.1275.
If the positive movement fails to hold and prices turn lower, the 1.1050 support is the nearest barrier that could halt steeper decreases. A potentially more important support though, is the 1.0950 mark ahead of the 20-day SMA at 1.0920.
In the bigger picture, EURUSD would need to make a sustained climb above 1.1140 in order for the outlook to become convincingly bullish.Related Assets
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