EUR/USD is moving lower on yesterday’s German retail sales data that showed a 0.9 percent decline sequentially in real terms while at the same time the US dollar also surged to a weekly high. The pair is currently trading 0.21 percent lower at 1.1820. The immediate support is at 1.1800, stronger supports are present at 1.1772 and 1.1745. The intraday resistance is at 1.1855 while another resistance is present at 1.1884 level.

The shorter moving average (SMA-21) is finally showing a resistance area at 1.1837, however the longer period average (SMA-50) indicates a support area at 1.1633. The price has also moved below the mid-Bollinger band. The lower-Bollinger band favors a drop until 1.1763. The RSI has also come out of the bullish zone while the MACD is now showing a slight divergence from the on-going uptrend. The price pattern in the 4-hourly period is bearish and supports short entries. A reasonable sell would be on a rally at 1.1845 with a target of 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.1884 resistance level.

If the current price pattern continues in coming trading sessions the likelihood of a further drop to 1.1745 would be on the table.


Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

By LCMS Traders FX Analysis Team

You will get access to our "Getting Started Tutorials" where you will learn the trading methodology devised by the LCMS Traders Team who uses the same exact methodology to trade a Multi-Million Dollar account on a daily basis.

Leave a Reply

Your email address will not be published. Required fields are marked *