EUR/USD has gathered bullish momentum and advanced toward 1.0700 in the second half of the day on Monday. In the absence of high-tier data releases, the positive shift witnessed in risk sentiment is weighing on the US Dollar and allowing the pair to climb higher.
The EUR/USD pair is confined to a tight intraday range ahead of a directional catalyst. The pair is technically neutral, according to the daily chart, with a limited bullish potential. EUR/USD is meeting sellers around its 20 Simple Moving Average (SMA), which is losing its bearish strength but remains above the current level at around 1.0660. The 100 SMA, in the meantime, advances below the current level and nears 1.0515, the 50% Fibonacci retracement of the 2022 yearly slump. Finally, technical indicators have turned flat just below their midlines, reflecting the absence of directional strength.
The 4-hour chart offers a similar technical picture. The pair is trading between a mildly bullish 20 SMA and a bearish 100 SMA, while the 200 SMA keeps heading south far above the current level. Meanwhile, the Momentum indicator turned marginally higher but is stuck around its 100 line, failing to provide directional clues. The Relative Strength Index (RSI) indicator seesaws around 55, but stands below its intraday high, reflecting limited buying interest. Bulls could have better chances if EUR/USD regains 1.0700, although a major resistance level is located at 1.0745, the 61.8% retracement of the aforementioned yearly decline.
Support levels: 1.0610 1.0560 1.0515
Resistance levels: 1.0660 1.0700 1.0745
The EUR/USD pair is confined to a tight intraday range ahead of a directional catalyst. The pair is technically neutral, according to the daily chart, with a limited bullish potential. EUR/USD is meeting sellers around its 20 Simple Moving Average (SMA), which is losing its bearish strength but remains above the current level at around 1.0660. The 100 SMA, in the meantime, advances below the current level and nears 1.0515, the 50% Fibonacci retracement of the 2022 yearly slump. Finally, technical indicators have turned flat just below their midlines, reflecting the absence of directional strength.
The 4-hour chart offers a similar technical picture. The pair is trading between a mildly bullish 20 SMA and a bearish 100 SMA, while the 200 SMA keeps heading south far above the current level. Meanwhile, the Momentum indicator turned marginally higher but is stuck around its 100 line, failing to provide directional clues. The Relative Strength Index (RSI) indicator seesaws around 55, but stands below its intraday high, reflecting limited buying interest. Bulls could have better chances if EUR/USD regains 1.0700, although a major resistance level is located at 1.0745, the 61.8% retracement of the aforementioned yearly decline.
Support levels: 1.0610 1.0560 1.0515
Resistance levels: 1.0660 1.0700 1.0745
