EURUSD Bulls Look Exhausted Near 1.0400

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EURUSD is weakening a bit after the climb to the 1.0450 barrier, which is a level slightly above the 200-period simple moving average (SMA) in the daily chart. Currently, the market is retreating near the psychological 1.0400 mark with the technical oscillators losing steam. The RSI has retreated from the overbought region, while the MACD continues to move in the positive area with weak momentum.

However, the market seems to be well supported by the short-term SMAs around 1.0315-1.0340 and therefore only a decisive close below them would put the pair on the back foot. Moving lower, the price should first break the 1.0220 support and the 1.0095-in-between swing high from November 8. Clearing that obstacle as well, all attention would turn to the 200-period SMA at 1.0000.

Alternatively, if the bulls dominate above 1.0400, the spotlight will shift back to the 1.0450-1.0480 resistance zone, the break of which could extend the imminent uptrend to the 1.0600 mark, taken from the peaks on June 27.

In short, EURUSD is expected to hold an upward direction unless the price closes significantly below the 200-period SMA near the parity.

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