- EUR/USD’s daily chart shows sell-on-the rise mentality.
- Thursday’s high is the level to beat for the bulls.
EUR/USD is currently trading at 1.1833, representing a 0.15% gain on the day, having found bids near 1.1810 early Friday.
The single currency picked up a strong bid on Thursday after the European Central Bank kept rates unchanged as expected, but disappointed bears by expressing no concern regarding the euro’s strength.
However, the spike to levels above 1.19 was short-lived, and the pair ended the day at 1.1814, forming a daily candle with a long upper shadow. Such candlesticks are indicative of sell-on-the rise mentality.
That, coupled with the 14-day relative strength index’s downtrend, suggests scope for deeper losses in EUR/USD. The immediate support is seen at 1.1783 – the trendline rising from May 14 and July 10 lows. A violation there would expose the Aug. 3 low of 1.1696.
On the higher side, 1.1918 (Thursday’s high) is the resistance to beat for the bulls.
Daily chart
Trend: Bearish
Technical levels
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