EUR/USD Price Forecast: 100-Day SMA blocks bullish reversal
The EUR/USD pair registers gains of over 0.32% on Friday as traders face key resistance at the 100-day Simple Moving Average (SMA) at 1.1567, as bulls eye the 1.1600 psychological figure. At the time of writing, the pair trades at 1.1564 after bouncing off daily lows of 1.1526.
On Friday, the EUR/USD pair experienced a gain of over 0.32% as traders encountered a key resistance level at the 100-day Simple Moving Average (SMA) of 1.1567. Bulls targeted the psychological figure of 1.1600. At the time of reporting, the pair was trading at 1.1564 after rebounding from daily lows of 1.1526. The EUR/USD market structure indicated that a downtrend persisted.
Successive lower highs and lower lows had been respected, but since July 30, when the pair reclaimed the 1.1500 level, the possibility of a bullish reversal had increased. The Relative Strength Index (RSI) suggested growing bullish momentum, yet EUR/USD might turn bullish only if traders could overcome the critical resistance levels.
Should that occur, the next significant area of interest would be the 200-day SMA at 1.1629. If surpassed, the following cycle high would be the May 29 high at 1.1685. Removing these two levels could lead EUR/USD toward the 1.1700 mark, opening up the April 17 high of 1.1849 ahead of the 1.1900 area. Conversely, if the currency weakens below 1.1500, a move to the 50-day SMA at 1.1465 would be anticipated, with 1.1400 as the subsequent demand zone.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
