The EUR/USD pair is currently trading near the 1.13 zone on Monday, showing a strong rebound during the European session as the market gains strength. Despite the significant upward movement, the overall technical outlook presents a mixed view, with conflicting signals across different timeframes. Short-term indicators suggest possible retracements, while the longer-term trend remains decidedly positive, creating a cautiously optimistic outlook for the pair.
The daily technical setup displays a complex but generally positive outlook. The Relative Strength Index (RSI) is in the mid-range of 50, indicating neutral momentum, while the Moving Average Convergence Divergence (MACD) still shows selling pressure, signaling the potential for consolidation in the near future. However, the Average Directional Index (14) in the 20s supports buying pressure, suggesting that the pair may sustain its recent gains. The Williams Percent Range (14) and Commodity Channel Index (20) also reveal neutral momentum, adding to the cautiously optimistic sentiment.
Moving averages present a more positive long-term picture. The 10-day Exponential Moving Average (EMA) and the 10-day Simple Moving Average (SMA) align with the current bullish sentiment, while the 100-day and 200-day SMAs confirm the wider upward trend. In contrast, the 20-day SMA remains in the sell zone, potentially hindering the pair’s recovery.
On the 4-hour chart, the outlook remains strongly bullish. The 4-hour MACD is signaling buying momentum, in line with the broader daily trend, while the shorter-term 10 and 20-period EMAs and SMAs indicate sustained buying interest. The Relative Strength Index (RSI) and Average Directional Index (ADI) also suggest a neutral stance, reflecting the current consolidation period after the sharp upward movement.
Initial support levels can be found around 1.1230, with additional levels at 1.1220 and 1.1217. On the upside, resistance is likely to emerge at 1.1280, followed by 1.1282 and 1.1284. Broader Fibonacci levels indicate deeper support in the 1.0400 to 1.0900 range, while resistance stretches towards 1.1500, 1.1700, and 1.2000, giving a broader context for potential breakout scenarios.