Half profit taking amid month end, half risk aversion Friday, EUR/USD has slumped from 1.3106 past Thursday to current 1.2980 area, losing around 120 in just one 4 hours candle, breaking under the 20 SMA in the mentioned time frame. Both, Momentum and RSI are heading south, crossing or about to cross their mid lines, suggesting further downside pressure ahead, yet due to the strong fall, some upside corrective movement could be expected before, that should not overcome 1.3020 resistance area, also the mentioned SMA to hold a bearish tone; if above, pair should attempt to regain the 1.3045/60 area first, and even extend towards 1.3080 later.
To the downside, key support comes at the 1.2960 area, where the pair has found support most of this week, and we found and ascendant daily trend line coming from early July. Under that level buyers should have set stop losses, so watch for an acceleration under 1.2950, to trigger a continuation rally towards the 1.2880/1.2900 area.
View Live Chart for the EUR/USD
To the downside, key support comes at the 1.2960 area, where the pair has found support most of this week, and we found and ascendant daily trend line coming from early July. Under that level buyers should have set stop losses, so watch for an acceleration under 1.2950, to trigger a continuation rally towards the 1.2880/1.2900 area.
View Live Chart for the EUR/USD
