EUR/USD has broken through a multi-week support area and is currently trading 0.08% lower to 1.1696. The US dollar index is currently gaining and has moved above the 94.00 resistance area. The pair’s immediate support is at 1.1685 while other support areas are at 1.1660 and 1.1645. The intraday resistance is at 1.1715 another resistance is present at 1.1744.
The current market price is keeping below the moving averages, the short period average (SMA-21) indicates a resistance area at 1.1826 while the longer period average (SMA-50) shows the resistance area at 1.1770. Analyzing the long term trend shows that the price pattern on the weekly chart has also turned bearish and the support areas at 1.1644 and 1.1625. On the intraday scale, the RSI is at 46 and appears to enter the further bearish zone. A Fibonacci Retracement drawn from 1.1170 to 1.1970 shows the 38.2% retracement level is still far from the current market price. Based on the current price pattern, the pair is good to sell on rallies. A reasonable intraday sell entry would be at or near 1.1725 while keeping a target at 1.1670. A tight stop-loss for this trade would be just above the 1.1755 resistance level.
Bears would need an intraday closing below 1.1640 to keep the control failing to do so may send the pair in a consolidation phase for some time.
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