As Sean Lee, Founder of FXWW notes, “Medium-term traders are keen to sell EUR/USD rallies in line with the dominant downtrend but a quick look at shorter-term charts (see attached) shows a slightly different picture with a modest uptrend in control. Support should be solid near 1.2250 and again near 1.2215/20.”
Valeria Bednarik, Chief Analyst at FXstreet.com observes an “overall bearish stance” in the hourly chart, and if 1.2250 is broken, “the downside will likely be exposed for the rest of the day.” EUR/USD is currently trading sideways around the 1.2300 handle.
Key points to keep in mind in the sessions ahead:
From Mr. Lee: “Expect the range-trading bias to remain; the trick as always will be in picking the edges.” From Ms. Bednarik: “Short term, bearish trend will remain intact as long as price holds below 1.2330/40 price zone.”