You are here: Home > articles > Forex > Technical Analysis – EURUSD loses momentum; re-tests short term rising trend line
Technical Analysis – EURUSD loses momentum; re-tests short term rising trend line
January 22, 2019 7:26 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 has declined considerably after finding strong resistance level on the three-month high of 1.1570 on January 10. The world’s second most traded currency pair is now ready to re-test the short-term ascending trend line, which has been holding since November 12, while it dropped below the 20- and 40-simple moving averages (SMAs) in the daily timeframe.
Looking at the technical indicators, the RSI is losing momentum beneath its neutral threshold of 50, while the MACD oscillator is flattening near the zero line following the bearish crossover with its trigger line in the positive zone. Yet the latter could also be an indication that the downward rally is overdone, and hence a rebound on the diagonal line should not be a surprise in coming sessions.
Penetrating the aforementioned diagonal line and moving lower, support is expected to come around 1.1310. where the price stopped on January 3. Should this prove a weak obstacle, the selling could pick up speed until the 1.1265 low, where any violation could bring more pressure to the market, with the price probably stretching further down to test the 17-month low of 1.1215.
Alternatively, in case of a rebound, immediate resistance could come from the 40- and then from the 20-day SMAs currently at 1.1385 and 1.1420 respectively. Higher, the 23.6% Fibonacci retracement level of the downleg from 1.2550 to 1.1215, near 1.1530, could also restrict upside movements, while a run above this barrier could lead prices towards 1.1570 again.
In the short-term picture, EURUSD is still increasing bullish tendency as long as it moves above the rising trend line, but in the long-term view, the price remains in negative structure since February 2018.
Related Posts: