EUR/USD Consolidates After Advance Pauses
2022.12.12 05:32
EUR/USD has been edging higher since early October after its long-term downtrend paused at the 20-year low of 0.9535. However, the pair has been stuck in a sideways pattern in the last few daily sessions after its advance failed to surpass the 1.0594 barrier.
The momentum indicators currently suggest that bullish forces are in control. Specifically, the RSI is hovering above its 50-neutral mark, while the stochastic oscillator has posted a bullish cross.
To the upside, if buyers re-emerge and push the price higher, initial resistance might be encountered at the recent high of 1.0594. Conquering this barricade, the bulls could then aim at the May peak of 1.0780. Even higher, the March resistance of 1.1185 might curb any further advances.
On the flipside, bearish actions could send the price to test the 1.0442 support region. Should that floor collapse, the spotlight could turn to 1.0289 before the November support of 1.0222 comes under examination. Failing to halt there, the pair could descend towards the 1.0090 resistance zone, which could now act as support.
In brief, EURUSD appears to have altered its short-term picture back to positive after jumping above its 200-day simple moving average (SMA). Hence, a break above the 1.0594 ceiling could signal the resumption of its rebound.
