EUR/USD clings to modest daily gains above 1.0500 heading into the American session as the US Dollar struggles to find demand following Monday’s rally. The modest improvement in market mood seems to be helping the pair edge higher amid a lack of high-tier data releases.
The EUR/USD pair is posting fresh daily highs in the 1.0520 price zone, and the daily chart shows that the risk is skewed to the upside. The pair keeps developing above all of its moving averages, with the 20 SMA crossing above the 200 SMA, both at around 1.0360.
The 100 SMA, in the meantime, grinds higher, far below then at around 1.0055. Finally, technical indicators are directionless, the Momentum just above its 100 level and the RSI near overbought readings.
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The 4-hour chart shows that the pair is currently battling to overcome a still bullish 20 SMA while the longer moving averages maintain their upward slopes below the current level.
At the same time, technical indicators turned higher within neutral levels, favoring a bullish extension without confirming it.
Source- FxStreet
