EURUSD has been trending higher recently as it moves above a rising trend line connecting the lows since late February. Price is finding resistance around the 1.1500 major psychological mark and could be due for a correction from the climb.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 50% level is closest to the rising trend line around the 1.1300 mark. A shallow pullback could already find support at the 38.2% Fib or 1.1350 minor psychological mark that’s close to the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the moving averages is also widening to reflect stronger bullish momentum.

However, RSI is still heading lower to indicate the presence of selling pressure, and the oscillator has room to cover before reflecting oversold conditions. Stochastic is also moving south, so price could follow suit while sellers have the upper hand.

The euro has managed to shore up most of the safe-haven gains versus the US dollar as the Fed recently announced an emergency rate cut of 0.50%. The ECB is scheduled to make its monetary policy decision this week, but policymakers signaled in the previous week that the health crisis does not warrant stimulus just yet.

Prior to this, the euro zone will be releasing mid-tier reports from its top economies that could further confirm that the economy could stay resilient. Still, it’s worth noting that the outbreak continues to worsen in Italy and has somewhat spread through the border of France, so the impact of the virus might be bigger than initially anticipated.