EUR/USD Price Forecast: Rises towards 1.1600 but RSI remains bearish

The EUR/USD surges over 0.36% as the Greenback turns negative on the day, as US President Donald Trump cancelled strikes on Iran, saying that the US and Iran are ironing out the final points of a peace agreement. At the time of writing, the pair trades at 1.1579.

EUR/USD Price Forecast: Technical outlook

Even though the EUR/USD bounced off the lows of the week at around 1.1589, it seems to be consolidating below 1.1600.

Momentum, as measured by the Relative Strength Index (RSI), shows that buyers are gaining strength, though the index is below the 50-neutral level, suggesting caution is warranted.

For a bullish resumption, the EUR/USD must clear 1.1600. Once hurdled, the next resistance is the confluence of the 50- and 200-day SMAs at around the 1.1655-1.1676 area, followed by the 100-day SMA at 1.1689 ahead of 1.1700.

Conversely, if sellers keep EUR/USD below 1.1600, it opens the door to a retest of 1.1500. Below this level, the next stop would be the March 30 daily low of 1.1443. Below this level, the next area of interest would be 1.1400.

EUR/USD Price Chart – Daily