EUR/USD Tests 50-Day SMA And Returns Lower
2022.10.24 05:03
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stretched its upside movement towards the descending trend line and the 50-day simple moving average (SMA) near 0.9900 but is quicky returning those gains.
The MACD is holding above its trigger and zero lines in the negative region, while the RSI is ticking slightly lower around the 50 level, confirming the recent downside momentum.
A pullback may meet immediate support around the 20-day SMA at 0.9785, while even lower the bears could try to overcome the 0.9630 barrier. Should the price retreat under that level, the 20-year low 0.9530 and the return line of the long-term downward sloping channel around the 0.9335 level could come under speculation.
In the positive scenario, the pair could improve above the 50-day SMA to challenge a stronger resistance around the parity level. The 1.0200 area and the 1.0355 zone remain the big highlights ahead of the 200-day SMA currently at 1.0520.
Meanwhile, in the medium-term picture, the situation seems to be getting more interesting as the 50-day SMA is also acting as strong resistance.
In brief, EURUSD is expected to pause the north-run in the short-term, while in the medium-term, buying interest could advance if the market confirms a climb above the parity level.
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