The EUR/USD pair is approaching a key resistance level near the 100-day Simple Moving Average (SMA) after posting moderate gains. The Relative Strength Index (RSI) indicates positive momentum, suggesting the potential for further advances.
Despite previous attempts to break this resistance, the price action indicates another retest is anticipated. The Moving Average Convergence Divergence (MACD) displays flat green bars, hinting at a possible continuation if the resistance is surpassed.
A decisive breakthrough above the 100-day SMA may lead to further gains, potentially reaching around the 1.0550 level. Conversely, repeated rejections at this threshold could push the pair towards support near the 20-day SMA, making the upcoming sessions pivotal for market direction.
The pair has been making progress towards an area where sellers have shown strength in the past. The recent gains place it just below the 100-day Simple Moving Average, which has acted as a ceiling before. Momentum favours the buyers for now, as shown by the Relative Strength Index, which remains in positive territory.
Multiple failures to clear this barrier in the past suggest there is plenty of interest from both sides. The MACD is showing green histogram bars that are not increasing in height, meaning bullish momentum exists but is not accelerating. Still, if price pushes through this zone, it would likely open the path towards 1.0550, an area of prior price interaction.
If yet another rejection occurs, attention shifts towards the 20-day Simple Moving Average, where buyers may attempt to regain control. The next few trading days will decide which side gains the upper hand. Traders should watch for either a decisive move beyond this barrier or another failure that sends the pair lower.
