- The EUR/USD extended the rally after the European session and traded near a fresh months of high above the main moving average.
- The pair surged more than 3.70% in a week, resulting in a critical shift in prospects in the favor of buyers.
The EUR/USD took a major position on Wednesday, and was pushed further into bullish territory after already performing strong in recent sessions. The pair rose to its highest level since November after seeing new demand during European sessions. Price action is firmly above the simple moving average (SMA) for 20, 100 and 200 days, so buyers appear to be in control and have a stronger upward bias.
Technical indicators reflect this bullish momentum. The relative strength index (RSI) is rising sharply, hovering near the acquired territory, suggesting strong purchasing pressure. Meanwhile, Moving Average Convergence Divergence (MACD) printed fresh green bars to further confirm the emotional changes. Given the magnitude of recent profits, it is not possible to rule out periods of consolidation or mild pullback in the short term.
Looking at the important level, immediate resistance is seen near 1.0730. This is a zone where you can determine whether bullish running will be extended further. On the downside, initial support is around 1.0505, with stronger purchase interest near the 100-day SMA. Moves below these levels may indicate a pause with bullish momentum, but the broader outlook remains positive as long as price action exceeds the SMA, which defines key trends.
