EUR/USD: Around an important crossroads again [Video]
|EUR/USD
When the dollar rally pulled EUR/USD below 1.1695/1.1750 old key support It was an important breakdown. As the market ticked back higher yesterday, it is beginning to feel as though this is now around an important crossroads again. Old support becomes new resistance of an overhead supply of sellers and how the market responds around 1.1695/1.1750 now will be very important to the development of the outlook in the coming weeks. There is still a corrective configuration to momentum, with RSI, MACD and Stochastics all falling away at ever lower highs, pointing to a consistent theme of selling into strength. The resistance 1.1695/1.1750 would be a classic sell zone if the dollar rally is to continue. If the RSI fails under 50 then this would be another sell signal. Initial support is at 1.1610 and protects a retreat towards 1.1420/1.1490. A close above 1.1750 would question the strength of the dollar recovery, with a now four week downtrend around 1.1805 today.
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