EURUSD continued trading in a range today, fluctuating around the key 1.12 level. The intra-day upside bias is strong but this is not likely to be sustainable in the near term. RSI is only slightly above 50 and the stochastics are falling.
Looking at the broader view, prices remain within the upward trending channel that’s been forming since mid-March. The positive trend is supported by the bullish crossover of the 50-day moving average with the 200-day moving average. But the Ichimoku cloud paints a more bearish picture as prices are below it and the tenkan-sen and kijun-sen lines are negatively aligned. The medium-term outlook is therefore neutral.
A move above the cloud would shift the bias to a bullish one but prices are likely to meet resistance at the bottom of the cloud at 1.1260. Meanwhile, the 200-day moving average is the nearest support at 1.1137.
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