The daily EUR/USD chart shows a market that has at least shifted from a bearish to sideways mode after finding support at 1.0462 in March and then failing to reach that low in April.
EUR/USD Daily Chart 5/12
(click to enlarge)
The daily chart shows a market that got rid of the bearish bias and might even be turning bullish after a beak above 1.1052. It even treated that broken resistance as support, which is an additional signal for the bullish outlook at least towards the support/resistance area around the psychological level of 1.15.
AT this point a break back below 1.1050 might bring the short-term bullish mode back to a sideways one.
The 4H chart shows a market that is staying bullish at least in the short-term as price is staying the 200-, 100-, and 50-period SMAs, which are sloping up and in bullish alignment. The RSI has tagged above 70, even 80, and has remained above 40 after a pullback. This reflects maintenance of the prevailing bullish momentum.
With the bullish bias, EUR/USD can open up a bullish continuation scenario if it clears above a recent, common resistance pivot at 1.1290. This would keep the 1.15 level in sight. The 1H chart is also showing a bullish signal.
In the 1H chart we can see that price broke above a falling trendline that held price action in a bearish correction since last week. As we get into the 5/12 US session, price has also broken above the 200-, 100-, and 5-hour SMAs as the RSI tagged above 70. Now it appears that EUR/USD should remain bullish as long as it holds above 1.12. If price falls back below 1.1175 and the 1H RSI falls below 40, the pressure will return towards the 1.1050-1.1065 support area.
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