EURUSD staged a strong rally from early February after breaching the key resistance level at 1.1000. This allowed the pair to break out of a range that it has been trading in since early December 2015. A high of 1.1375 was reached on February 11 but since then there has been a pullback as the pair had approached overbought levels on the daily RSI. The indicator reached the 70-point level and gave a sell signal.
But MACD is above zero and is still rising, so there is scope for further upside momentum. However, prices need to remain above the 200-day moving average, which is currently acting as immediate support for any moves to the downside. This support area lies around 1.1113. A break below this would bring the pair to retest the 1.1000 level before entering back into the range and back to a neutral bias.
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.