EURUSD bulls may pick up steam if the 1.1200 door is opened

EURUSD is set to extend its October uptrend to fresh highs after registering a new higher low around the 1.1072 barrier, boosting optimism that the bullish pattern may have a continuation.

The RSI and the MACD favor the positive sentiment too, as the indicators are sloping upwards in the bullish area.

Still, the 1.1200 barrier, which is the 61.8% Fibonacci retracement of the 1.1411-1.0878 downleg, should leave the door open for the rally to stretch up to the 78.6% Fibonacci of 1.1297. In case this happens, and the 1.1297 obstacle proves easy to get through, resistance could next run up to 1.1411. Moving higher, the spotlight will probably shift to 1.1510.

Alternatively, a downside reversal below the 50% Fibonacci of 1.1144 and the 200-day simple moving average (SMA) would put the bears in charge, bringing the 1.1072 support back into focus. A decisive decline beneath the tentative ascending trendline could prove more important if the 1.1000 level falls apart too, extending the sell-off probably towards 1.0940.

Looking at the three-month window, the picture is turning positive from neutral as the pair is pushing efforts to distance itself from 1.1178. The rising 50-day SMA is another encouraging signal for an outlook improvement.

In short, EURUSD is in a positive mood both in the short- and medium-term timeframe.