EURUSD is attempting another upside push today but remains below last week’s peak when it rallied above the 200-day moving average. The weekly gains took it just below the 61.8% of the Fibonacci retracement level of the August – December downleg. The 61.8% retracement level is likely to act as resistance level around 1.1255.
Further gains are possible in the near term as the MACD has turned positive again and RSI is holding strong just below overbought level. In the bigger picture though, the outlook is neutral as prices remain within their year-long trading range.
A sustained climb above the 61.8% Fibonacci retracement level could drive the 50-day moving average above the 200-day line. This would strengthen the bullish bias for a move to target the August 2015 high of 1.1713.
On the downside, a drop below the 50% Fibonacci level at 1.1115 would weaken the upside bias, while a slide below the 38.2% level at 1.0980 would shift the bias back to neutral.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.