Technical Analysis – EURUSD posts bullish spike near 200-day SMA
- EURUSD erases today’s gains
- Stochastics and MACD still suggest upside momentum
EURUSD has continued to develop between the medium- and long-term ascending trend lines, despite the bullish spike towards the 1.0860 level earlier in the day. The 1.0775 support looks to be a tough obstacle for the bears, and only a closing session beneath it would switch the outlook to a more negative one.
Technically, the stochastic oscillator is keeping its upward movement, while the MACD just crossed above its trigger line below the zero area.
In case of steeper bullish actions, the next strong barrier for traders to have in mind is the bearish crossover between the 20- and 200-day simple moving averages (SMAs) at 1.0870. Further increases could open the way for a rest at the 1.0950 resistance.
In the negative scenario, a decline below 1.0775 could lead the market to the downside, hitting the 1.0665 support and the lows from April 16 at 1.0600.
In summary, further advances in the EURUSD are necessary to confirm a bullish correction of the 1.1215-1.0775 down leg.
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