The EUR/USD pair continued its upward movement for a second consecutive day, reaching approximately 1.1830 during Thursday’s Asian trading session. This rise comes amidst ongoing worries about how US President Donald Trump’s unpredictable trade policies are affecting the economy, leaving the US dollar in a precarious position, which, in turn, is supporting spot prices.
Technically, the Relative Strength Index (RSI) is at 56, signaling increasing positive momentum without crossing into overbought territory. This aligns with a recovery from an initial reading below 30. Additionally, the Moving Average Convergence Divergence (MACD) line is positioned slightly above the signal line and shows mildly positive territory, suggesting a gradual shift towards buyer dominance rather than a vigorous trend.
However, the intraday rally appears to have hit a wall near the 100-period simple moving average (SMA) on the 4-hour chart. This level may now be crucial for day traders, as a strong break above this resistance could set the stage for targeting 1.1860, followed by 1.1900. On the flip side, immediate support lies at the recent high of 1.1790, followed by 1.1760, which marks the beginning of the latest recovery phase.
Maintaining a position above 1.1790 would preserve the bullish outlook, but a dip to 1.1760 would undermine the current bounce and might indicate a deeper consolidation period. Still, while the short-term sentiment leans slightly towards bullish, it might be wise to wait for consistent strength above the 100-period SMA on the 4-hour chart before committing to any further upward positions.
