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EUR/USD continues sideways

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EUR/USD continued trading in a consolidative mode on Wednesday, staying between the 1.1260 (S1) support line and the resistance of 1.1360 (R1). The rate has been trading in a sideways manner since the 27th of January and the near-term picture 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. A clear break below the key support of 1.1260 (S1) is likely to set the stage for another test near the 1.1100 (S2) area.

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

• Resistance: 1.1360 (R1), 1.1540 (R2), 1.1650 (R3).

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