EUR/USD Price Forecast: Struggles at 1.1600, dives below 100-day SMA
- EUR/USD shifts neutral after clearing six-month downtrend resistance.
- Flat bullish RSI suggests upside, but momentum is slowing.
- Daily close above 1.1600 exposes 1.1629 and 1.1700.
The shared currency clings to minimal gains versus the US Dollar on Monday, edging up by some 0.08% after reaching a month-and-a-half high at 1.1614, then reversing course and falling beneath 1.1600, poised to end the session near the low of the day (LOD) of 1.1561.
EUR/USD Price Forecast: Technical Outlook
After climbing above a six-month-old downslope resistance trendline, EUR/USD has shifted from a downward bias to neutral, consolidating around the 1.1500-1.1600 area. On the upside, it is capped by the 100-day Simple Moving Average (SMA) at 1.1568, which is the first resistance level. If breached, the next area is 1.1600 ahead of challenging the 200-day SMA at 1.1629. The next key resistance is at 1.1650, followed by 1.1700.
On the downside, the EUR/USD might shift back to downwards, if it drops below 1.1500. If cleared, the next stop is the 50-day SMA at 1.1466, which converges with the six-month-old previous resistance trendline, turned support. Once breached, the next stop is 1.1400.
From a momentum standpoint, further upside is seen. The Relative Strength Index (RSI) is bullish, though it has turned flattish.
Given the backdrop, the EUR/USD might be poised to retest 1.1600. Failure to close above that level on a daily basis opens the door to a false breakout and could exacerbate a pullback toward lower price targets.
EUR/USD Price Chart – Daily
Euro FAQs
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