FxNews—EUR/USD bullish momentum from $1.033 resulted in the prices shifting above the 75-period simple moving average. However, the uptrend eased after the currency pair neared the $1.06 critical resistance.
EURUSD Technical Analysis
This surge in the euro’s value drove the Stochastic Oscillator into the overbought territory, where the indicator depicts 86 in the description. This means EUR/USD is overbought, and the market has the potential to reverse or consolidate at the current price, which is $1.057.
EURUSD Bull Run Hits $1.06 Barrier: What’s Next?
The immediate support is $1.052, backed by the 75-period SMA and the ascending trendline. From a technical perspective, the downtrend will likely resume if EUR/USD declines below this level. In this scenario, the next bearish target could be the $1.043.
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Please note that the bearish outlook should be invalidated if the EUR/USD prices exceed $1.06. If this scenario unfolds, the current bullish momentum could extend to $1.066, a resistance area backed by the 38.2% Fibonacci level.
