EUR/USD has moved 0.39 percent lower to 1.1875 after briefly touching 1.2011 in yesterday’s session. The move is mainly attributed to some profit taking by the investor at nearly 3 months high. However, the pair now seems to be having some support around current levels. The intraday support is at 1.1854 while stronger supports are present at 1.1820 and 1.1800 levels. The near term resistance is at 1.1890 another resistance is present at 1.1933.

Currently, the pair is trading near the SMA-21 support area at 1.1842, The SMA-50 is also indicating support at 1.1621. The pair is also keeping above the mid-Bollinger band while the upper-Bollinger band is indicated a move until 1.1958. The RSI is at 59 and still above the neutral zone. Despite the decline, the pair’s price pattern is still bullish and the correction is mostly favoring intraday buy entry. A decent buying level would be at 1.1850 while keeping a small target of 50 to 60 pips. A relatively safe stop-loss for this trade would be just below the 1.1800 level.

A closing above 1.1900 will once again provide more control to the bulls. On the downside, only the price action below 1.1800 would indicate a permanent trend reversal.


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By LCMS Traders FX Analysis Team

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