- EUR/USD adds some optimism for more upside actions
- Technical oscillators suggest bullish moves
- Longer-term outlook still negative
EUR/USD has been recovering somewhat after the aggressive selling interest towards the two-year low of 1.0220 that was reached in the preceding week. The market is currently flirting with the 20-day simple moving average (SMA), around 1.0420, with the technical oscillators confirming another bullish wave. The RSI is heading marginally up, while the MACD is holding above its trigger line below the zero level.
If the bullish scenario persists in the very short-term view, then immediate resistance could come from the 1.0450 barrier ahead of the descending trend line at 1.0500, which overlaps with the 50-day SMA. A successful break beyond these critical lines could send traders to the 1.0600 psychological mark and the 1.0665 resistance.
Conversely, a reversal to the downside could pave the way for more aggressive bearish movements, potentially reaching the previous low of 1.0220, before posing a challenge to the inside swing high of 1.0090, and potentially the parity level.
To conclude, EUR/USD has a bullish start to the year, but the broader outlook is strongly bearish.