Technical Analysis – EURUSD bullish trend stalls at 1.38
March 14, 2014 8:19 am
The underlying long-term trend for EURUSD is bullish. The pair rallied strongly from the end of January to a 2 ½ year high of 1.3966 on Thursday after breaching a key resistance level at 1.3914.
Prices have since pulled back sharply towards support at 1.3833.
Studies on the daily time frame show the market is above the 20, 50 and 100-day moving averages, which is a bullish signal. MACD is rising and above zero, which is also a bullish sign.
However, RSI is near 70, suggesting the upward momentum is exhausted. As such, a dip is possible towards next support at 1.3720, an area where there has been congestion recently. Next support is at 1.3642. This is a key area since it is the point where the 20-day and 50-day moving average crossed and where the 100-day moving average is currently located.
The underlying long-term trend for EURUSD is bullish. The pair rallied strongly from the end of January to a 2 ½ year high of 1.3966 on Thursday after breaching a key resistance level at 1.3914.
Prices have since pulled back sharply towards support at 1.3833.
Studies on the daily time frame show the market is above the 20, 50 and 100-day moving averages, which is a bullish signal. MACD is rising and above zero, which is also a bullish sign.
However, RSI is near 70, suggesting the upward momentum is exhausted. As such, a dip is possible towards next support at 1.3720, an area where there has been congestion recently. Next support is at 1.3642. This is a key area since it is the point where the 20-day and 50-day moving average crossed and where the 100-day moving average is currently located.
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