The EUR/USD pair continues its upward trajectory, approaching a significant technical resistance near the 100-day Simple Moving Average (SMA). After a series of bullish sessions, traders are closely watching whether the pair can break through this key barrier, setting the stage for further gains.
Bullish Momentum Gains Strength
Recent price action suggests that the bulls remain in control, with the Relative Strength Index (RSI) advancing further into positive territory. This indicates strong buying interest, potentially fueling another retest of the 100-day SMA. Additionally, the Moving Average Convergence Divergence (MACD) histogram is displaying flat green bars, signaling a brief pause in momentum but leaving room for a continuation of the bullish trend if resistance is successfully breached.
Key Technical Levels to Watch
- Resistance: The immediate hurdle remains the 100-day SMA, which has previously acted as a formidable ceiling for EUR/USD. A sustained breakout above this level could pave the way for an advance toward the 1.0550 region.
- Support: If the pair fails to break resistance, downside pressure could push EUR/USD back toward support at the 20-day SMA. A decline below this level might signal a shift in momentum, favoring bearish traders.
Market Outlook and Potential Scenarios
With bullish sentiment strengthening, the upcoming trading sessions will be crucial in determining the pair’s next move. If buyers manage to clear the 100-day SMA convincingly, it could trigger further upside potential. However, a rejection at this level may reignite bearish pressure, leading to a pullback in price action.
Traders should monitor fundamental developments, including macroeconomic indicators and central bank signals, to gauge market direction. The EUR/USD pair remains at a pivotal juncture, and price action in the coming days will be critical in shaping its near-term trajectory.
