EUR/USD is trading lower after some recovery in the USD. Yesterday, the pair moved as high as 1.2242 but closed lower at 1.2157. The decline is mainly due to some recovery in the USD. The US dollar index has now climbed up to 90.40 from Wednesday’s low of 89.64. However, the Index is currently near the SMA-50 resistance line. The pair’s immediate support levels are at 1.2122 and 1.2070. The intraday resistance areas are at 1.2188 and 1.2233.
Yesterday’s candlestick has formed a shooting star pattern that may further support the bears. On the intraday charts, the technical indicators are giving mixed signals. The SMA-14 is showing support area at 1.2124 and the SMA-50 is indicating resistance at 1.2151. The pair is keeping above the mid-Bollinger band. The upper and lower bands are at 1.2202 and 1.1991 respectively. The RSI is above the neutral zone and appears to be flat. Based on the nearby support areas and the fact that the DXY is currently near the SMA-50 resistance line EUR/USD may rise further. However, a decent intraday buy entry would be on a further dip at 1.2120 with a target of 1.2185 and stop-loss at 1.2085.
A weekly closing above 1.2150 would be supportive of the bulls and they would be in a better position to challenge the major hurdle at 1.2240 during the next week. On the downside, a weekly closing below 1.2080 would be supportive of the bears and open the doors for a bigger decline.
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