Morning Market Update – EUR/USD

EUR/USD edged higher to 1.1687 but failed to take out 1.1687 key resistance and retreated. As the pair is staying below 1.1659 near term pivot, intraday bias remains neutral first. Main focus remains on 1.1659. A decisive break there will carry a larger bearish implication and target the 1.1574 support level next. Continuing on the downside, a break of 1.1574 support will indicate a short term topping and a rejection from 1.1574. In such case, intraday bias will be turned to the downside for 1.1544 support.

Looking at the bigger picture, the case for a medium-term reversal continues to build up with the pair staying below the resistance though the current price action is above 50 EMA. Focus will now be on 1.1659 key resistance.

Rejection from there will maintain medium term bearishness and would extend the whole down trend. However, firm break of 1.1659 will indicate reversal. In such case, further rally would be seen back to 1.1719 support turned resistance next.

The pair has broken out once more. With such strong momentum that continues to build, it had only seemed like a matter of time, however the renewed strength of the dollar has helped drive the break below resistance. This had been the broad projection target from the old resistance. This now means that EUR/USD is trading at its highest and shall see some correction before making any further progress, but also on the longer term charts is now testing the top of resistance. As yet there seem to be little reason not to believe that the greenback can continue to push lower, so selling into the intraday dips remains viable. The daily momentum indicators are all strongly configured. The only real caveat on the near term horizon is the initially pivot supportive, on the four hourly chart shows support.

The EUR/USD pair settled around 1.1687 level after the decline that appeared since morning, accompanied by stochastic entering the oversold areas. Therefore, we believe that the chances are valid to turn bearish and change the main bullish trend, reminding you that our next main target is located at 1.1641, while the price needs to hold below to keep the chances of continuing the negative scenario for the upcoming period.

Expected trading range for today is between 1.1579 support and 1.1709 resistance.

Expected trend for today: Bearish
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