We can see that EUR/USD has been stuck within a range for a few days now, between the 1.1720 and 1.1840 levels. Overall though, looking at the bigger picture, the pair continues to hold above its long-term upwards moving trendline, taken from the lows of the 3rd of January last year. The only concern here is that EUR/USD has been on a down-move from around the 19th of April and the recent bounce that we saw on the 30th of May, could be classed as a correction. For now, we will remain cautious and wait for a break through one of the key highlighted levels.
A break through the 1.1840 mark, could open the doors to some higher levels, such as 1.1890, or even 1.1940. If these key areas of resistance are not able to withhold the rate from rising, then the next stop for EUR/USD could be the psychological 1.2000 barrier, where the pair could stall for a while.
On the other hand, a strong pullback down to the 1.1720 area and eventually its break could be seen as a perfect opportunity for the bears to drive EUR/USD lower, towards the 1.1650 zone or even the 1.1615 mark. A break below the last could force the pair to test the aforementioned long-term upwards moving trendline.
The RSI detects upside momentum, as it is above 50 and is pointing higher. The MACD, already positive, has bottomed near its zero line and crossed above its trigger line. Both oscillators are indicating towards a slightly more positive outlook than negative.
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