EURUSD posts impressive gains and trades above 1.0200 on Tuesday amid broad dollar weakness. The data from the US showed that Housing Starts and Building Permits declined in June. Meanwhile, reports suggesting that ECB could hike by 50 bps on Thursday boost the euro.
The EUR/USD pair retreated modestly from the mentioned high but trades above the 38.2% retracement of its latest daily decline measured between 1.0614 and 0.9951 at 1.0204, an immediate support level. The daily chart shows that the 20 SMA maintains a firmly bearish slope a few pips above the immediate Fibonacci resistance, the 50% retracement of the mentioned slide at 1.0280. Technical indicators head north with substantial momentum but are still below their midlines, correcting the extreme oversold conditions posted last week.
In the near term, and according to the 4-hour chart, the pair reached overbought conditions. Technical indicators have pared their advances after reaching extreme levels, turning marginally lower ahead of the US opening. The 20 SMA continues to advance below the current level, while sellers reject the advance at around a bearish 100 SMA. Bulls may give it another try if the pair breaks above the aforementioned resistance level at 1.0280, eyeing a test of the 1.0360 price zone.
Source- FxStreet
