Morning Market Updates – EUR/USD

The EUR/USD pair has been rejected once again with a strong momentum. The pair continued to have resistance which has been on hold and now slowly indicates a downside movement. This has helped to drive the pair to break below the 1.1798 level. This means that the EUR/USD pair was trading at its highest has now been stopped. As there seem to be little reason for the euro to continue to push higher. Therefore, buying into the intraday dips remains viable. The daily momentum indicators are all strongly configured.

A decisive break has paved the way to the 1.1761 level handle next. On the downside, the pair trading below the 1.1761 minor supports will turn intraday bias neutral and bring some consolidations. But the pair trading downside of retreat should be contained above this support and bring a further rise resumption.

In the bigger picture, a firm break from the resistance level further affirms the pair’s medium term reversal. This will remain the favored case as long as resistance level holds.

The pair found a solid resistance and forced it to bounce lower to trade below the 1.1798 level. This point out that the close accomplished below this level keeps the chances valid to achieve the preferred general slide to downward.

The pair’s stochastic enters the 40.0 levels to provide further negative signals accompanied with the price action to support the negative scenario. Taking into consideration, the pair breaking below the levels might push the price to visit the channel support which appears with pair trading below 50EMA and 100SMA.

The pair has settled within resistance is trading below the 1.1798 level. Until it gets a positive momentum to support and resume the bullish trend, the pair finds it hard to breach this level and forces the price to trade in the sideways range.

In general, the pair’s negative overview remains valid on the intraday and short term basis, unless the resistance level has broken.  This might push the price above the 1.1798 level.

The pair’s expected trading range for today is between the 1.1798 resistance and 1.1742 support areas.

Expected trend for today: Bearish

For more detailed analysis from the author, please visit NoaFX.