Technical Analysis – EURUSD turns more bearish after drop from 6-month high

Euro4EURUSD has turned increasingly bearish in the short term after falling below the 21-day moving average and below the key 1.13 level last week. The pair has made another lower high after falling from the 6-month high of 1.1463 that was hit on April 12. This was when RSI reached overbought levels at 70 and then turned back down as upside momentum faded and consequently prices fell. RSI is currently below 50 in bearish territory and trending down, suggesting the risk of more downside momentum.

Prices are currently trapped between the 50-day moving average (acting as immediate support at 1.1214) and the 23.6% Fibonacci (1.1241) of the retracement of the 1.0520 to 1.1463 rise. A daily close below the Fibonacci level and a fall below the moving average would open the way for a fall to the 38.2% Fibonacci level 1.1103. Prices would need to clear the 1.13 level for scope to retest the 1.1463 high. A move above this high would see a resumption of the recent uptrend from the December low of 1.0520.

Origin: XM

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