Bullish Run Nears Daily Highs
- EUR/USD traded around the 1.0780 mark on Thursday, climbing closer to the top of its daily range.
- Even with mixed signals from oscillators, the bullish setup is still in play, supported by short and medium-term moving averages.
- Support levels are identified between 1.0790 and 1.0760, while resistance can be expected around 1.0810 and 1.0840.
EUR/USD continued its upward trend on Thursday, particularly picking up pace after the European trading session, reaching towards the upper end of its daily range around 1.0780. The price action clearly points to a bullish sentiment, despite some mixed signals from momentum indicators. This steady climb throughout the session was further supported by underlying trend indicators.
From a technical perspective, the overall outlook still leans towards bullish for EUR/USD. Although the Moving Average Convergence Divergence (MACD) is showing a slight sell signal at 0.007, and the Relative Strength Index (RSI) is neutral at 51.5, key moving averages like the 20-day SMA (at 1.0790), 100-day SMA (at 1.0518), and 200-day SMA (at 1.0729) continue to support an upward trend. Adding to this bullish picture, both the 30-day Exponential Moving Average (EMA) and SMA, at 1.0709 and 1.0682 respectively, also suggest upward momentum.
Looking at other indicators, like the Average Directional Index (ADX) at 26.8 and the Commodity Channel Index (CCI) near -7, they suggest that the current trend strength might be neutral. This hints that we might need further confirmation before anticipating a sustained breakout.
Looking at key levels, immediate resistance is anticipated around 1.0808, with a more significant barrier forming around 1.0844. Conversely, on the downside, strong support is located near 1.0790, followed by further support levels at 1.0785 and 1.0764. A decisive break above the 1.0810 resistance could open the door for targeting higher levels, while if the pair fails to maintain its position above the support zone, we might expect a temporary pullback, still within a generally bullish context.
