Technical analysis: EUR/USD remains trapped near 1.0850

EUR/USD continues to struggle to find adequate bullish momentum to peel the pair off its 200-day Simple Moving Average (SMA) at 1.0830, and intraday bids are stuck near 1.0850. Topside gains are capped by a 50-day SMA grinding into a congestion pattern with the 200-day SMA.

The pair has struggled to chalk in additional gains after recovering from the last swing low into 1.0700. Growing risk of a technical ceiling priced in below 1.0900 leaves the pair exposed to intraday congestion. Tuesday’s brief rally into 1.0875 saw a sharp pullback, and the pair has a technical floor baked in between 1.0800 and 1.0810.