EUR/USD: This is an ongoing range between 1.1695/1.2010 [Video]

EUR/USD

When EUR/USD breached the four month uptrend so decisively last week, the suggestion was that the bulls were struggling. Yesterday’s decisive sharp negative candle (with a -75 pip downside move) confirms that this is an ongoing range between 1.1695/1.2010. There is also now a growing threat within this range that there would be a downside break. For eight weeks there has been a deterioration in the RSI, peaking at lower levels and turning increasingly corrective. Now decisively below 50 and the lowest since May, along with corrective MACD and Stochastics, the pressure is mounting on 1.1695/1.1750 key support band. The support of 1.1750 has had a couple of intraday breaches now without a closing break. However early downside again today is threatening again and a close below 1.1750 would be a five week low. A close under 1.1695 would complete a big top pattern and imply around -300 pips of downside. The hourly chart shows initial resistance 1.1775/1.1800 area now which is a barrier to a recovery. A failure to reclaim this lost ground will simply increase the growing pressure on the key medium term support band 1.1695/1.1750.