EUR/USD is having a bit of a tough time pushing through resistance near 1.1800-1.1810. Price is consolidating, but recent candles are showing that traders are getting a bit hesitant after that sharp move higher. The pair is still respecting its trendline nicely, which is currently sitting at 1.1750-1.1760 – that’s our first real support level.
The 50 EMA is looking pretty good for the bulls, sloping upward below price and supporting that overall bullish structure. But the 200 EMA is still a bit of an issue – it’s sitting lower and reinforcing the idea that we’re in a medium-term uptrend. And RSI has started to ease off a bit from overbought levels around 70 – that’s telling me the momentum is starting to cool off, rather than reversal.
If we can get a clean break above that resistance, I think we could see a pretty strong move up towards 1.1860 – but if we don’t, we might be looking at a pullback.
Trade idea: If you do decide to trade this one, look for a buy signal above 1.1810 and aim for 1.1860, but with a stoploss below 1.1750.
