Tuesday, 20 February 2018

EUR/USD Lower

The US dollar resumed gains today supported by the rising US treasury yields. The EUR/USD pair dropped to 1.23189 but found support at the 38.2% Fibonacci retracement of latest January to February bullish run. 
The pair bounced few pips higher and currently is trading at 1.2335. The recovery is quite unsustainable as the pair failed to fight back the 23.6% of same Fibo retracement from where hesitated last Friday.
On the four hour time frame the price crossed to below its 20-day bearish SMA and the flat 100-day SMA. RSI is located around 38 and has lost directional strength. Stochastic bounced from its extreme negative territory but yet remains below 20.
According to above readings the short term outlook for the EUR/USD pair remains bearish. 
First support is provided by the 200-day SMA at 1.23 and next at 1.2270. Looking to the upside resistance is seen at 1.2380 (the flat 100-day SMA) and higher at 1.2400.




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