EURUSD dipped below the 50-day moving average last Thursday on hopes of further monetary easing but was back above it today. The pair has been consolidating in a tight range since December and despite some increased downside pressure in the last couple of trading days, the near term outlook remains mostly neutral. RSI is just below 50 while the signal line in the MACD chart is flat around 0.
If today’s upside momentum is sustained, prices could find resistance around 1.098. A break above this level would encourage a move above the Ichimoku cloud and towards the 200-day moving average. This would shift the bias to bullish.
To the downside, the January 5 low of 1.0709 is the nearest support. A drop below this level would change the bias back to negative.
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