EUR/USD Technical Analysis: Stochastics bearish divergence at channel resistance; Eyes on 1.1250 downside target
|- The Daily chart (bearish) in EUR/USD shows that the price has been supported on the 61.8% Fibo since Oct 2018 with rallies capped at the 50% Fibo of the same range (with the confluence of the 200-D SMA - a tough nut to crack) .
- 50-D SMA is currently offering near term resistance.
- Meanwhile, on the 4HR charts, we are seeing the price making a fresh high but momentum lagging, suggesting that the price may struggle through channel resistance and the confluence of the 200 4HR SMA and 38.2% Fibo of the recent swing highs and lows.
- Failures here will open the case for a run back to the rising channel support with the potential of a test below it - Eyes on the 23.6% Fibo and the midpointt of the 1.12 handle. However, a run of the 50 4HR SMA opens 1.1320.
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