Morning Market Update – EUR/USD

EUR/USD remains in a bullish bias after pausing the uptrend from 1.1908. The pair has been trading above the levels in recent sessions and looks to continue upward. The medium-term technical picture is still bullish and the prices continue to rise within the ascending channel but the near-term outlook has shifted to a consolidation phase.

The market had reached its highest level at the 1.19877 area. This is now a key resistance level which needs to be broken before rising further.

Downside risk has diminished as stochastic has stopped falling and is now flat while it remains in bullish territory above 50.

Should prices fall below 1.1987 and extend lower from the range low of 1.1908, the focus will clearly turn to the downside with support at 1.1908 coming into view. A deeper fall would target a previous resistance turned support zone at 1.1908. Falling below this level would see the market retrace more than uptrend and likely move lower to 1.1884 before reversing the whole uptrend.

There is a little immediate risk of a downturn for now but EUR/USD needs a strong bounce from current levels to clear the 1.19877 peak in order to see a resumption of the uptrend that started.

EURUSD maintains a technically bullish tone for the medium term and trend indicators are bullish. The 50-day moving averages are positively aligned and are rising upwards.

The EURUSD pair is attempting to recover bullish trading momentum, after briefly dipping below its MA, and finding strong intraday buying interest from the support of the MA level. Price action is currently trading around the 1.19369 region, after the EURUSD pair remains intraday bullish while holding above the key support level.

The EURUSD pair ended recently above 1.19369 level, which forms positive factor that supports the chances of the return to the main bullish trend and stop the bearish correction that dominated the recent trading, and by taking a deeper look at the four-hour chart, we find that the price draws bullish pattern that its confirmation line located at 1.19369, which means that breaching this level will confirm completing the positive pattern and push the price to achieve gains on the short-term basis.

Therefore, these factors encourage us to suggest the bullish trend in the upcoming sessions, and the main targets begin at 1.19877 and extend to 1.2028, noting that breaking 1.19087 will put the price under the correctional bearish pressure again.

The expected trading range for today is between the 1.1908 support and 1.2028 resistance.

Expected trend for today: Bullish
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