You are here: Home > articles > Forex > Technical Analysis – EURUSD fails to extend strong gains; indicators signal for retracement
Technical Analysis – EURUSD fails to extend strong gains; indicators signal for retracement
February 5, 2018 8:26 amVideo
Latest News
- Analysis of EUR/USD pair on May 24, 2024 May 24, 2024
- Analysis of GBP/USD pair on May 24th. Another British report showed weakness, but who cares? May 24, 2024
- USD/JPY: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- GBP/USD: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- EUR/USD: Simple trading tips for novice traders for May 24th (US session) May 24, 2024
- GBP/USD: trading plan for the US session on May 24th (analysis of morning deals). Sellers missed 1.2700 May 24, 2024
- EUR/USD: trading plan for the US session on May 24th (analysis of morning deals). The euro is not going to give up May 24, 2024
- EUR/USD. May 24th. The bears are starting to go on the offensive May 24, 2024
- Forecast of GBP/USD pair on May 24, 2024 May 24, 2024
- Trading Signals for EUR/USD for May 24-28, 2024: sell below 1.0864 (200 EMA – 21 SMA) May 24, 2024
- Trading Signals for GOLD (XAU/USD) for May 24-28, 2024: buy above $2,333 (200 EMA – oversold) May 24, 2024
- Weekly Forex Outlook: 24/05/2024 – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – Is the pause in NGAS a warning signal? May 24, 2024
- Technical Analysis – USDCAD eases slightly after bullish rally May 24, 2024
- Week Ahead – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – GBPJPY continues its journey north May 24, 2024
- Video market update for May 24, 2024 May 24, 2024
- Forex forecast 05/24/2024: EUR/USD, GBP/USD, USD/CAD, Gold and Bitcoin from Sebastian Seliga May 24, 2024
- USD/JPY: trading tips for beginners for European session on May 24 May 24, 2024
- GBP/USD: trading tips for beginners for European session on May 24 May 24, 2024
EURUSD posted a strong positive January while this month started with downside pressure. The US dollar strength drove the pair lower on Friday and failed to hit again the three-year high of 1.2540. The short-term technical indicators are flat and point to more weakness in the market.
Having a look on the daily timeframe, the Relative Strength Index (RSI) dropped slightly lower of the 70-overbought level at 68, suggesting that the latest upswing may be running out of steam and that the risk of a near-term correction is high. Additionally, the MACD oscillator is holding near its trigger line and is ready to create a bearish crossover in the positive territory, indicating further losses.
Should prices reverse lower, immediate support could come near the 1.2280 price level, which is the 20-day simple moving average at the time of writing. Below that, the 1.2160 barrier is another major support, while a drop below this area could take the price closer to 1.2080, which overlaps with the 23.6% Fibonacci retracement level of the up-leg from 1.0560 to 1.2540. Moreover, near 1.2080 the 50-day SMA is holding and is pointing to the upside. So, the aforementioned barrier is acting as a strong obstacle for the bears.
On the flip side, there is immediate resistance at 1.2540, while above it, the next major resistance to watch is 1.2570 taken from the high of December 2014.
Related Posts: