Technical Analysis – EURUSD bulls stay in charge
EURUSD extends rally, hits 1.1130
But oscillators point to fading momentum
A setback may be possible before the next leg north
EURUSD has been in a steady rally since August 15, when it hit support at 1.0950, and it is currently testing the key resistance zone of 1.1130, a zone that stopped the bulls from heading further north back in December, as well as back in July, 2023. Overall, the pair is trading above a short-term uptrend line drawn from the low of August 2, and well above the upper bound of a prior sideways range, at around 1.0900.
Although the technical picture on the 4-hour chart appears to be overly bullish, the short-term oscillators are suggesting that the upside momentum is fading, which means that a corrective setback may be in the works before the next leg north. The RSI has peaked within its above-70 zone, while the MACD, although extremely positive, has turned south as well and looks ready to fall below its trigger line.
A retreat may invite buyers from near the aforementioned uptrend line and the 1.1030. If this is the case, another bullish wave could surpass the 1.1130 high and aim for the 1.1240 area, marked by the high of March 1, 2022.
On the downside, a dip below 1.1030 could trigger a larger correction, as it would also take the pair below the short-term uptrend line. The bears may feel confident in targeting the low of August 15, at 1.0950, or the upper bound of the sideways range that contained most of the price action since the beginning of the year. That bound stands at 1.0900.
To recap, EURUSD remains in a steep short-term uptrend, but the short-term oscillators suggest that a corrective slide may be on the cards before the next impulsive wave.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.