EUR/USD: Conviction has been lost
|EUR/USD
The outlook continues to consolidate as another small bodied daily candlestick was posted yesterday. After the big swings seen early last week have dissipated, even on an intraday basis, conviction has been lost. After Friday’s doji candle, this week has had two candles that almost entirely cancel each other out. It comes as little surprise then that momentum indicators have moderated and lack conviction too, with RSI and Stochastics flattening. Support at $1.1165/$1.1190 has been bolstered as yesterday’s session low bounced from this recent band to maintain what is effectively a growing trading range (between $1.1165/$1.1420). However, with the market faltering slightly once more this morning, there is a hint of negative bias in the market. This is reflected on the hourly chart, where hourly RSI is gravitating towards 30, Stochastics are pulling decisively lower and hourly MACD lines bear cross at neutral. It lends a mild preference towards testing $1.1190 once more, whilst yesterday’s high of $1.1260 is initial resistance protecting $1.1290.
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