EUR/USD stays near the 1.1260 line

EUR/USD slid somewhat on Tuesday, found support once again fractionally close to the 1.1260 (S1) line and rebounded to trade virtually unchanged for a second consecutive day. The rate has been trading between the aforementioned support line and the resistance obstacle of 1.1540 (R1) since the 27th of January and therefore I would hold the view that the near-term picture of EURUSD stays neutral. As far as the broader trend is concerned, the price structure still suggests a longer-term downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. I still consider the recovery from 1.1100 (S2) as a corrective phase and I would expect the bears to eventually take control again.

• Support: 1.1260 (S1), 1.1100 (S2), 1.1020 (S3).

• Resistance: 1.1540 (R1), 1.1650 (R2), 1.1730 (R3).