EURUSD Points Higher Above 1.2000, Lacks Direction

EURUSD is on course for a bullish period after the bounce off the 1.2022 support, entering the Ichimoku cloud. The RSI is sloping upwards in the negative territory, while the stochastics posted a bullish crossover within the %K and the %D lines, heading north.

Should the pair manage to strengthen its positive momentum, the next resistance could come around the 1.2080 barrier. A break above this level would drive the market until the 20- and 40-period simple moving averages (SMAs) at 1.2095 and 1.2110 respectively ahead of the 200-period SMA at 1.2132. Above this level, the next target could come in the 1.2167 resistance.

However, if traders are unable to send prices higher in the next few sessions, the risk would shift back to the downside at 1.2022 before the focus turns to 1.1950, registered in February 5. The next key support to watch lower down is 1.1915, taken from the inside swing high in November 2020.

All in all, EURUSD is turning marginally higher in the very short-term, however, in the medium-term the pair has been lacking direction over the last month.