EURUSD holds bullish bias in very short-term

EURUSD posted almost 4% of gains after the bounce off the 20-year low of 0.9530 in the preceding week, remaining within the long-term downward sloping channel.

Technically, the RSI indicator is pointing upwards in the bearish region, while the MACD is trying to strengthen its bullish bias in the negative area, suggesting that the next near-term movements could be to the upside.

Currently, the price is approaching the 20-day simple moving average (SMA), which is standing slightly above the 0.9863 resistance, while more gains could open the way for the parity level and the 50-day SMA at 1.0020. Running higher, a break of the descending channel could add some optimism for bullish actions until the 1.0200 barrier.

In the negative scenario, a drop off again could hit the latest trough of 0.9530 before challenging the September 2001 inside swing high of 0.9335. Beneath these obstacles, the next marks to have in mind are the psychological levels such as 0.9300, 0.9200 and 0.9100.

Summarizing, EURUSD has been in a bullish movement in the very short-term; however, the bigger picture remains strongly bearish.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).