EUR/USD: The bull run on the euro has hit the buffers [Video]
|EUR/USD
With a second consecutive negative close, the bull run on the euro has hit the buffers. The question is whether the move will now begin to go into reverse, of whether it is a near term bump in the road. Technical indicators have naturally rolled over, but as yet, nothing that would be considered as an outright sell signal. For that we must look at the support around $1.1700 which seems to be developing into a potential neckline of a top pattern (potential head and shoulders top). Given the euro bounced over +60 pips off its session lows yesterday, there is a still an uncertain feel to this market now. Today’s early consolidation is not helping this either. However, momentum indicators are for now holding up, with only really a deterioration on Stochastics as the negative signal. There is an uptrend of the past three weeks that rises at $1.1650 today and the bulls are seemingly not quite ready to given up their gains. The hourly chart shows that this could be an important session for how this phase develops. As hourly RSI has unwound, a failure between 50/60 would suggest corrective momentum is building, also if hourly MACD lines fail around neutral and Stochastics bear cross. For almost two weeks of the rally, the 55 hour moving average was an excellent gauge and could now become a basis of resistance as it falls (this morning around $1.1790). A move above $1.1800 would help to improve the outlook again.
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.