EUR/USD has been extending its downfall while Thursday’s 4-hour chart is showing the pair is approaching a confluence of critical indicators. Yohay Elam, an analyst at FXStreet, determines if EUR/USD is et to break or bounce from the 1.1780 support.
Key quotes
“EUR/USD has paused just at the 200 Simple Moving Average, just below 1.18, on the 4-hour chart. That indicator converges with an uptrend support line that has been accompanying the pair since mid-August.”
“The sharp turnaround has sent the Relative Strength Index from overbought conditions to the verge of oversold ones. On the other hand, momentum turned to the downside and the pair dropped below the 50 and 100 SMAs.”
“Uptrend support is around 1.1780 at the time of writing. It is followed by 1.1750, a support line from late August, and then by the stubborn cap of 1.17.”
“Resistance is at 1.1850, which held EUR/USD down last week and where the 100 SMA hits the price. The next levels to watch are 1.1880 and 1.925.”
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