EUR/USD extends sideways move, failing to post higher high
2023.05.08 06:25
had been in a steady uptrend after finding its feet at the March low of 1.0515. Even though the pair posted a fresh 13-month peak of 1.1094 in late April, it has been rangebound since then, appearing unable to generate a fresh higher high and resume its uptrend.
The short-term oscillators are endorsing a cautiously bullish bias. Specifically, the MACD is softening but remains above both zero, while the RSI has flatlined above its 50-neutral mark.
If buyers re-gain total control and push the price higher, the 13-month high of 1.1094 could act as initial resistance. Surpassing that zone, the pair might ascend towards a fresh multi-month peak, where the March 2022 resistance of 1.1184 could prove to be a tough obstacle for the price to overcome. Further advances could then cease at the February 2022 high of 1.1495.
On the flipside, should the pair reverse lower, the bears could target the recent support of 1.0941. If that floor collapses, the attention could shift towards 1.0785 before the 1.0712 barrier gets tested. A break below the latter may set the stage for the March low of 1.0515, which is the base of the pair’s latest uptrend.
In brief, EURUSD has been trading sideways near its recent 13-month high as it seems to be lacking the necessary momentum to push higher. Nevertheless, the narrowing Bollinger bands are reinforcing the case of an impending breakout, with the broader technical signals tilting to the bullish side.
