VOT Research Desk
The weekly chart for the EUR/USD pair reveals that the pair made higher highs and lower lows, keeping the risk to the upside.
The 20 Simple Moving Average (SMA) moves significantly below the present level, which is at about 1.0080, on the same chart, and technical indicators consolidate close to overbought readings, all of which indicate a positive continuation.
Finally, the bearish significance of the crossing of the 100 SMA below the 200 SMA, both well above the current level, is diminished.
The daily chart demonstrates that the EUR/USD traded throughout the week above all of its moving averages, with the 20 SMA continuing to rise above the lengthier ones despite a partial loss of its bullish vigor.
After rebounding from its previous low, the momentum indicator heads north, well into positive territory. considerable purchasing interest protecting the downside, which is reflected in its midline.
Last but not least, the Relative Strength Index (RSI), still pointing in the wrong direction at about 65, has spent the week stabilizing just ahead of overbought levels.
To be able to extend its gains toward 1.0620 initially, then 1.0700 afterwards, EUR/USD has to break over 1.0580.
The 1.1000 figure should become available with a break above the latter. The next level of support is 1.0420, and buyers are located at 1.0490.
An improbable slip below the latter could encourage a decline in direction of 1.0300.
