Technical Analysis – EURUSD medium-term uptrend takes a pause
March 24, 2014 7:51 am
EURUSD retreated from a 2 ½ year high of 1.3966 hit on March 13 and extended lower towards the key psychological level of 1.3800. At this point, the medium term trend is still bullish as the technical indicators are not giving any sign of a trend reversal yet. RSI is above 50 and MACD is above zero. (both bullish signals).
Also, there is a rising trend line and price action is above it, forming higher tops and bottoms, which suggest the medium-term uptrend is intact and has stalled to make a correction. The market is above the 200-week moving average which is bullish. Also the 50-week moving average crossed above the 200-week moving average which tends to be a bullish signal.
Weekly support to the downside is expected at 1.3642. (February 23 low). Next support comes at 1.3476 (February 2 low). A break below 1.3293 (November 3 low) would threaten the bullish trend as the 200-period moving average will be breached.
To the upside, a break of the March 13 high (1.3966) will accelerate a move towards the October 2011 high of 1.4245.
EURUSD retreated from a 2 ½ year high of 1.3966 hit on March 13 and extended lower towards the key psychological level of 1.3800.
At this point, the medium term trend is still bullish as the technical indicators are not giving any sign of a trend reversal yet. RSI is above 50 and MACD is above zero. (both bullish signals).
Also, there is a rising trend line and price action is above it, forming higher tops and bottoms, which suggest the medium-term uptrend is intact and has stalled to make a correction. The market is above the 200-week moving average which is bullish. Also the 50-week moving average crossed above the 200-week moving average which tends to be a bullish signal.
Weekly support to the downside is expected at 1.3642. (February 23 low). Next support comes at 1.3476 (February 2 low). A break below 1.3293 (November 3 low) would threaten the bullish trend as the 200-period moving average will be breached.
To the upside, a break of the March 13 high (1.3966) will accelerate a move towards the October 2011 high of 1.4245.
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