Eurusd Lacks Direction

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Eurusd Lacks Direction

Eur/Usd Lacks Direction Near 1.0870

little upside in the greenback has sent the EUR/USD into a slightly defensive position near the 1.0870 handle. However, the EUR/USD lacks any real direction as the investors are trying to digest the US ADP numbers for May.

On the EUR/USD daily chart, it looks like the buying momentum has paused. At the same time, there are no big moves from the buyers as they are also acting cautiously.

Eur/Usd Trades Above All Big Ma Lines

The EUR/USD is also above all the big moving averages, which means the long-term trend is still bullish. The 20 SMA lacks any direction, which hints at a lack of trend in the short term.

Similarly, all the other technical indicators are directionless, with the momentum indicator printing near the 100 level. A look at the RSI shows that it is near 58 with almost a flat slope - This means the EUR/USD also lacks any downward potential.

While the long-term is bullish, the short-term has shifted to neutral-bullish. For a brief moment, the EUR/USD dipped under the 20 SMA but has recovered since then. Meanwhile, the 100 and the 200 SMA lines are still showing bullish slopes.

Over all, it looks like the technical indicators lack any direction but are still in the positive territory. This might be a sign of a momentary stop in the buying as the investors await fresh cues.

Let's not forget that while the investors are not buying the EUR, they are also not rushing towards the USD. However, that might change after the release of May's NFP report.

The EUR/USD support levels are found at 1.0850 and then the 1.0820 handle. If the USD receives a boost, it could also send the EUR/USD towards the 1.0780 support.

The other scenario is a bullish EUR/USD, which could send the pair towards the 1.0910 and then the 1.0960 handle. A successful break above these levels will open the doors to the 1.100.

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