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Technical Analysis – EURUSD volatile but lack of direction keeps it in range

EURUSD reversed earlier gains to a high of 1.1329 to drop to around 1.1260. The pair has been consolidating recently but immediate bias is to the downside as RSI is heading lower towards 50 and the stochastic oscillator is bearish with the %K line trending down below the %D line.

There are bullish signals coming from the Ichimoku cloud, which suggest EURUSD has some momentum to continue on its upward path that began in mid-March. Prices are above the Ichimoku cloud and the tenkan-sen line crossed back above the kijun-sen line above the cloud. Another bullish signal is the 50-day moving average line pushing its way above the 100-day moving average line.

A move to break above the May 15 high of 1.1466 would strengthen the bullish momentum in the medium-term. The nearest support would be provided by the 50-day moving average at 1.1049 if EURUSD continued on a downward path.

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