- EUR/USD bulls need a break above the 200-week SMA.
- The average has been capping gains since the end of May.
EUR/USD is trading near 1.1310 at press time, representing a 0.12% gain on the day, having failed to keep gains above the 200-week simple moving average (SMA) last week. Currently, the SMA is located at 1.1333.
The buyers have failed to establish a foothold above the 200-week SMA in five out of the last six weeks. Similar price action was seen in February, following which the pair fell to lows near 1.0630.
As such, the 200-week SMA is the level to beat for the bulls. A weekly close above higher will likely cause more buyers to join the market, possibly yielding a breakout above 1.15. Alternatively, another rejection could embolden sellers and shift the focus to support at 1.10.
Weekly chart
Trend: Bullish above 200-week SMA
Pivot Points
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