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EUR/USD’s inability to capitalize on the intraday move beyond a one-year-old descending trend-channel suggests that the recent bullish run might have already started losing, in the opinion of Haresh Menghani from FXStreet.

Key quotes

“Slightly overbought conditions on the daily chart support prospects for some long-unwinding trade.”

“Some near-term fall, back towards challenging the very important 200-day SMA near the 1.1100 mark, now looks a distinct possibility. Any subsequent slide might still be seen as a buying opportunity and should remain limited near 100-day SMA support near the 1.1055 region.”

“On the flip side, the top end of the mentioned trend-channel, currently near the 1.1180 region, now seems to act as immediate resistance. This is closely followed by 23.6% Fibonacci level of the 1.2556-1.0778 downfall, around the 1.1200 mark, which if cleared decisively might be seen as a fresh trigger for bullish traders.”