EUR/USD has moved above the 1.7000 level just as indicated in yesterday’s analysis that the correction may extend further. Currently, the pair is trading at 1.1723 which is a stiff resistance area. The intraday resistance is at 1.1730 while other resistances are at 1.1755 and 1.1770. The near term support is at 1.1700 another support area is near 1.1650.

The pair has moved above the Fibo 38.2% level but strong resistance is present near the current market price. The Mid-Bollinger band is at 1.157, The SMA-21 and SMA-50 are indicating resistance areas at 1.17779 and 1.17997 respectively. Yesterday’s recovery has helped to move the RSI slightly higher but it’s still below the neutral zone. The MACD is below the zero line as well and seems supportive of the bears. The price pattern on the 4-hourly scale is bearish with a Doji and bearish engulfing pattern supporting the bears. Currently, the pair is good for intraday sell entries, a decent sell entry would be at or near 1.1745 with a target of 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.1770 resistance area.

Bulls need another intraday closing above 1.1700 to take the pair further higher, failing to do so bears may come back strongly and once again take the price toward testing the 1.1620 and 1.16000 support levels.

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By LCMS Traders FX Analysis Team

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