EUR/USD: the three and a half month uptrend rises at $1.1075 today [Video]

Richard Perry Independent Analyst

EUR/USD

The euro has been pressured in the past couple of sessions. Breaking below $1.1100 and the early January support of $1.1085 is asking serious questions of the medium term bull control. The three and a half month uptrend rises at $1.1075 today and it adds even greater importance to the support of the latest key higher low at $1.1065. A breach of $1.1065 on a closing basis would be a significant breakdown of the positive outlook. The selling pressure in recent weeks has left a series of lower highs and lower lows as a three week downtrend drops back to meet the three and a half month uptrend. The fact that the RSI is hovering around the 40/45 mark, with MACD lines dropping back to neutral, shows that this is a key inflection point. Having steadied the decline yesterday (admittedly on a low volume US public holiday), once more EUR/USD is around $1.1100. However, it is becoming apparent that until the three week downtrend is breached (today around $1.1150) then this negative near term move will dominate. RSI below 40 and MACD lines below neutral would hint at a potential downside break of $1.1065. For now though the medium term uptrend is holding.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

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