EU50 index is trading around 4,280 today. Price remains under pressure after the rejection at the resistance area of 4,400, We warned in previous posts that a pull back towards the blue support trend line is justified after a rejection at the yellow rectangle area. Support by the blue trend line is at 4,245. The RSI has already reached oversold conditions. Price justifies a bounce but there is still danger of a new lower low. Major horizontal support is found at 4,200. Bulls do not want to see a daily close below this level as this will signal the cancellation of any bullish short-term scenario.
The material has been provided by InstaForex Company – www.instaforex.com
Yellow rectangle- resistance
blue line- support trend line
EU50 index is trading around 4,280 today. Price remains under pressure after the rejection at the resistance area of 4,400, We warned in previous posts that a pull back towards the blue support trend line is justified after a rejection at the yellow rectangle area. Support by the blue trend line is at 4,245. The RSI has already reached oversold conditions. Price justifies a bounce but there is still danger of a new lower low. Major horizontal support is found at 4,200. Bulls do not want to see a daily close below this level as this will signal the cancellation of any bullish short-term scenario.
The material has been provided by InstaForex Company – www.instaforex.com
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