EURUSD has been in an uptrend since hitting its March low of 1.0515. In late April, and reaches a fresh 13-month high of 1.1094 but has since been rangebound. The pair has failed to generate a higher high and resume its uptrend, suggesting a lack of momentum.
Despite the lack of momentum, the MACD is softening but remains above zero, and the RSI has flatlined above its 50-neutral mark. These short-term oscillators are endorsing a cautiously bullish bias.
If buyers regain control and push the price higher, the 13-month high of 1.1094 could act as initial resistance. If the pair surpasses that zone, it might ascend towards a fresh multi-month peak. However, the March 2022 resistance of 1.1184 could prove to be a tough obstacle for the price to overcome. Further advances could then cease at the February 2022 high of 1.1495.
On the flip side, if the pair reverses lower, the bears could target the recent support of 1.0941. If that floor collapses, the attention could shift towards 1.0785 before the 1.0712 barrier gets tested. A break below the latter may set the stage for the March low of 1.0515, which is the base of the pair's latest uptrend.
The EURUSD has been trading sideways near its recent 13-month high. The narrowing Bollinger bands suggest that an impending breakout may occur. Despite the lack of momentum, broader technical signals are tilting to the bullish side.
Forex traders often use technical indicators like MACD, RSI, and Bollinger bands to make trading decisions. The news that EURUSD is rangebound and lacks momentum, but has short-term oscillators endorsing a cautiously bullish bias, is vital information for forex traders. They will use this information to determine whether to buy or sell EURUSD. Traders will also watch the potential resistance and support levels to decide when to enter or exit trades. The EURUSD's sideways movement may lead to a breakout, which could present a trading opportunity for forex traders.