EUR/USD Has Strong Day But EMAs Are Still Bearish

Russell Shor, CFTe, MFTA FXCM

The below is the daily chart of the EURUSD. Yesterday was a very strong day for the EUR. In this regard the RSI(9) has crossed above 50 in support (blue rectangle). However, to call a change in trend is, in our opinion, premature. The trend following indicators are still in a bearish stack (red rectangle). I.e. the green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. If the green 5-day EMA crosses above the orange 13-day EMA it will put the EMAs into a neutral formation. As such we continue to monitor.

Past performance is not an indicator of future results.

CHART SOURCE: FXCM MARKETSCOPE 2.0

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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