EUR/USD Technical Analysis for 6/25/15

The EUR/USD edged higher creating an inside day which reflects consolidation and indecision.  The Greek negotiations continue to play out and the deadline is scheduled for Thursday.  The IMF has already stated that they will give a few days of leway to the Greeks for payment on their debt.

After declining more than a big figure on Tuesday, the EUR/USD consolidated its loses, trading between the 20-day moving which was the cap at 1.1215, and the 50-day moving average which acted as the floor near 1.1125.  A close below the 50-day moving average would lead to a test of an upward sloping trend line that connects the lows in April to the lows in May and comes in at 1.0975, and then the May lows at 1.0840.

Daily momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal.  This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.  The index moved from positive to negative territorty confirming the sell signal.