EURUSD neutral in short-term but still bullish in medium-term
2024.06.03 04:58
• rebounds off 1.0800 and 200-day SMA
• Trades within narrow range
• MACD and RSI lack direction
EURUSD is currently moving sideways within a two-week consolidation area with upper boundary the 1.0895 resistance and lower boundary the 1.0800 round number.
Looking at the momentum indicators, the RSI is lacking direction slightly above the neutral threshold of 50, suggesting that the market could keep consolidating in the near term. The MACD also supports this view in the positive territory but is currently embraced by its red signal line.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the 1.0900 psychological level. A break above it would shift the bias to a more bullish one and open the way towards the 1.0940 bar and the restrictive region of 1.0980-1.1000.
However, if prices are unable to break to the upside the trading range in the next few sessions, the risk would shift back to the downside with the 1.0800 support and the 200- and the 50-day simple moving averages (SMAs) at 1.0785 and 1.0770. A drop below the medium-term descending trend line would signal a resumption of the bearish move, meeting the 1.0720 mark.
All in all, EURUSD is looking neutral to bullish in the short-term timeframe as it is still developing above the medium-term downtrend line and the SMAs.
