Saturday, 7 January 2017

EUR/USD Remains Corrective In Long Term

With the start of the new year the EUR/USD pair collided with the unexpected. The pair marked a 14-year low at 1.0340, while at the end of the previous year rallied to 1.0650.
The weekly chart is showing that the pair is placed well below the moving averages. RSI is situated at around 36 level and is displaying slight signs of upward movement. Stochastic is bouncing from the extreme oversold area, but still has not crossed the 20 zone. The technical readings are suggesting a corrective phase within the range from the last two years.
If case of conquering the 30th December’s high at 1.0650, the pair might fight 1.0704 (38.2% Fibonacci retracement of November 9th to January 3rd  run down) and set correction movement. 1.0500 are is acting as strong support and if falling below it, next important level is 1.0365. Anyway having in mind the freshly posted low, another are supposed to be around the physiological level at 1.0300.  


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