EUR/USD: The bull move looks to be beginning to stall [Video]
|EUR/USD
The euro has rallied a long way in the past month. An accelerating bull move added over 700 pips but the move looks to be beginning to stall now. We see similar hallmarks to the move of early June, where an acceleration higher stuttered initially before one more pull higher prior to an unwind. With the RSI recently peaking over 80 and beginning to tail off, along with bear crossing on Stochastics, we see this as being a similar situation now. Friday’s -70 pip decline and decisive negative candle suggests that a degree of corrective slide could be developing. The hourly chart is beginning to threaten a correction and how the bulls respond to Friday’s sell-off could be key today. There has not been two consecutive negative sessions since late June. A move under 1.1730 would complete a near term topping pattern, breaking the run of higher lows, and develop a new negative trend set up. Below 1.1680/1.1700 would open a deeper corrective unwind. Today’s intraday high of 1.1795 is the first line of resistance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.