Wednesday, July 16, 2014

EURUSD extends lower towards key support zone as 7-month rising wedge breakdown and 50/200 MAs dead cross weigh on the pair


The 7-month rising wedge breakdown in early May continues to weigh on the pair. EURUSD has been capped under the falling 50 day MA (aqua line) since the dead cross (50 day MA crossed below 200 day MA (black line)). The recent slide off 1.3652 lower high threatens to test 1.3503/1.3512 supports. Bearish daily studies suggest that a breakdown there is possible to extend weakness towards 1.3477 near 76.4% of the 1.3295/1.3993 rise. Below there would expose last November low at 1.3295.
On the upside, reclaiming 1.3652 then 1.3701 would negate the bearish scenario and stabilize for 1.3735.

Trading bias:
Sell zone: 1.3620/1.3650
Stop above 1.3701

Target near 1.3477

EURUSD daily chart


EURUSD weekly chart

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