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EUR/USD trades virtually unchanged

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EURUSD rebounded on Monday, hit resistance slightly below the 1.1260 (R1) barrier and slid back down to trade again near the 1.1180 (S1) area. I still believe that we are likely to see sellers challenging the low of the 26th of January, at 1.1100 (S2), in the near future. However, there is still positive divergence between the RSI and the price action, while the MACD has bottomed and poked its nose above its trigger line. These momentum signs make me cautious that another bounce could be looming before the bears prevail again. With regards to the broader trend, I believe that the pair is still in a downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. A break below the 1.1100 (S2) line in the future could challenge our next support at 1.1025 (S3), defined by the high of the 1st of September 2003.

• Support: 1.1180 (S1), 1.1100 (S2), 1.1025 (S3).

• Resistance: 1.1260 (R1), 1.1390 (R2), 1.1450 (R3).

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