EURUSD is once again edging higher today, extending its recent bullish momentum. It has reached a key resistance area above the 1.1032 level, which has proven to be a challenge for the bulls since February 2023. Despite this hurdle, the currency pair has managed to record a higher high, demonstrating the continuation of the established bullish trend since November 2023.
The bulls can take confidence in the current momentum indicators, which have yet to show signs of rally-exhaustion. The Relative Strength Index (RSI) remains comfortably above its 50-threshold, indicating a bullish market sentiment. The Average Directional Movement Index (ADX) is also steadily rising, pointing to a trending market. Additionally, the stochastic oscillator, while in overbought territory, is attempting to record a new higher high, mirroring the performance of EURUSD.
If the bulls maintain their hunger, they may endeavor to overcome the 1.1032-1.1095 resistance area. A successful breakthrough could potentially push EURUSD towards the previous highs of March 31, 2022, and July 18, 2023, located at 1.1184 and 1.1275 respectively.
On the flip side, the bears are eager to defend the 1.1032-1.1095 range and generate a downward move. Their target would be the 1.0798-1.086 area, where the 50- and 200-day simple moving averages (SMAs) are located, along with the 23.6% Fibonacci retracement of the September 28, 2022, to July 18, 2023, uptrend. Going lower, the 1.0671-1.0727 region, marked by the December 15, 2022, high and the 100-day SMA, could prove to be a formidable obstacle, possibly requiring more effort to break than initially anticipated.
The bulls currently hold a comfortable grip on the EURUSD market. However, they have now entered a key resistance area that may trigger a significant correction. Both the bulls and bears are poised for the next move, eager to prove their dominance. Traders and investors will be closely monitoring the battle between the two sides to gauge the future direction of EURUSD.
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