During the past week EUR/USD continued to develop between the
April bullish trend line and the September bearish one. As seen on the daily
chart the price touched, but couldn’t break the support provided by the first
trend line and meanwhile is standing well above November’s low.the levels of
support around 1.1800 were tested and were broken, but more significant
challenge is the area around 1.1720 – 1.1730, because there is confluence of horizontal
and trend-line support. So this is the place for pair to make it or break it.
On the same chart the 20-day SMA and 100-day SMA are staying flat above the
current price movement and are providing resistance at 1.1800 – 1.1825, while
the 200-day SMA is keeping bullish stance. RSI is located around 45 and has
lost directional strength. Stochastic is displaying strong bearish momentum
and is nearing extreme negative territory.
However the upcoming week will determine whether the bottom line would be under
occupation of the bears or euro bulls would fight it.
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