EUR/USD is trading 0.06% lower to 1.1759 and is extending yesterday’s losses. However, the pair has multiple support areas nearby and the decline may well be contained or it may enter into a consolidation period for some time. The immediate support level is at 1.1720 while 1.1700 and 1.1675 are strong support areas for the pair. The intraday resistance is at 1.1785 another resistance is present at 1.1823 level.

Fibonacci support (38.2%) is present at 1.16890 and the 50% support level is at 1.1586. The RSI is near the neutral zone and only a push below 50 would help to extend the downwards move. The current price is near the Lower-Bollinger band that is indicating a support area at 1.1734. The price pattern on the 4-hourly chart is slightly more bearish than the intraday pattern. Currently, the sell entry is only recommended on rallies. A reasonable intraday sell entry would be near 1.1800 while keeping a small target of 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.1833 resistance level.

On the flip side, the pair can also present buy opportunities in case if it closes near or at 1.1700 on the 4-hourly chart. Once again the target would be small that is between 50 to 60 pips and the stop-loss for this buy trade would be just below 1.1670.

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By LCMS Traders FX Analysis Team

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