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EUR/USD advances after violation of restrictive trendline
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Reclaims both 50- and 200-day SMAs
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Oscillators suggest that bullish forces are strengthening
EUR/USD has been attempting a recovery from its one-month low of 1.0666, with the price crossing above the downward-sloping trendline in place since December 2023. After some volatile sessions, the pair managed to conquer both its 50- and 200-day simple moving averages (SMAs).
Should the recent uptick strengthen, the price could initially challenge 1.0874, which is the 38.2% Fibonacci retracement of the 1.0447-1.1138 upleg. Higher, the June peak of 1.0915 might come under scrutiny. Further advances could then stall around the 23.6% Fibo of 1.0975, a region that curbed the pair’s upside in March.
Alternatively, if the pair falls back below its SMAs, immediate support could be found at the 50.0% Fibo of 1.0793. Failing to halt there, the pair could descend towards the 61.8% Fibo of 1.0711. Even lower, the one-month bottom of 1.0666 may provide downside protection.
In brief, EUR/USD has regained some lost ground in the past few sessions, while the break above its SMAs has further improved its short-term technical picture. Nevertheless, a break above its June high of 1.0915 is needed for the bulls to regain confidence for a full-scale reversal.