For a second week in a row, the EUR/USD pair refused to hold its gains above the 38.2% retracement of the 1.1533/1.0461 decline posted between February and March, at 1.0865, despite setting a fresh 3-week highs around 1.1050. The movement therefore, remains as corrective, as it would take a break above 1.1120, the 61.8% retracement of the same rally, to confirm additional midterm gains.
The pair seems to have lost part of its upward strength this past week, ending it barely 50 pips above the opening. The strong rejections on spikes above 1.1000 suggest that selling interest is just waiting for a better entry, rather than capitulate. Besides, the weekly chart shows long upper wicks in the last two candles, reinforcing the idea. Technically and in the same chart, the RSI has turned flat in oversold territory, still below 30, whilst the Momentum indicator managed to stage a tepid recovery from oversold territory, but remains well into the red. The 20 SMA maintains a strong bearish slope, but too far away to be relevant at this point.
In the daily chart, the price holds above a bearish 20 SMA, currently around 1.0760, whilst the Momentum indicator heads strongly higher in positive territory, but the RSI indicator already capitulated and turned lower at 48. Considering the day will likely end into the red, the Momentum indicator will likely turn lower before next candle opening. Anyway, the immediate resistance stands around the 1.0950 level, where the pair stalled several times intraday these last weeks, with a break above it favoring a continuation up to the mentioned highs around 1.1050, in route to the critical 1.1120 level. It would take a weekly close above it to confirm EUR bulls are here to stay.
To the downside, the mentioned 1.0760 is the first level to watch, with additional declines below it exposing the 1.0600 area for next week, whist if this last level gives up, the dollar will be positioned to retest its year high around 1.0460.
View Live Chart for EUR/USD
The pair seems to have lost part of its upward strength this past week, ending it barely 50 pips above the opening. The strong rejections on spikes above 1.1000 suggest that selling interest is just waiting for a better entry, rather than capitulate. Besides, the weekly chart shows long upper wicks in the last two candles, reinforcing the idea. Technically and in the same chart, the RSI has turned flat in oversold territory, still below 30, whilst the Momentum indicator managed to stage a tepid recovery from oversold territory, but remains well into the red. The 20 SMA maintains a strong bearish slope, but too far away to be relevant at this point.
In the daily chart, the price holds above a bearish 20 SMA, currently around 1.0760, whilst the Momentum indicator heads strongly higher in positive territory, but the RSI indicator already capitulated and turned lower at 48. Considering the day will likely end into the red, the Momentum indicator will likely turn lower before next candle opening. Anyway, the immediate resistance stands around the 1.0950 level, where the pair stalled several times intraday these last weeks, with a break above it favoring a continuation up to the mentioned highs around 1.1050, in route to the critical 1.1120 level. It would take a weekly close above it to confirm EUR bulls are here to stay.
To the downside, the mentioned 1.0760 is the first level to watch, with additional declines below it exposing the 1.0600 area for next week, whist if this last level gives up, the dollar will be positioned to retest its year high around 1.0460.
View Live Chart for EUR/USD
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