EUR/USD: Rally needs to break the 1.0920 resistance

EUR/USD is bullish, although unlikely to leave its latest range, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The US has just released its March Goods Trade Balance, which posted a deficit of $64.22B, worse than the $-62.67B expected, and Wholesale Inventories for the same month, which came in at -1.0% beating the market’s expectations.”

“EUR/USD has broken above a daily descendant trend line, bullish in the short term, although it would need to clear the 1.0920 resistance level to keep rallying today.”

“In the 4-hour chart, the EUR/USD pair is above its 20 and 100 SMA, which have turned flat, but still below a bearish 200 SMA. Technical indicators, in the meantime, maintain their strong bullish momentum within positive levels, skewing the risk to the upside.”