EUR/USD Technical Overview
After the announcement of the new rate, EUR/USD explored aggressively lower levels. The price action in H1 was pushed down by the downside pressure, which left the $1.11 level unchallenged. This led to a psychological floor around $1.10. Most people would agree that the chart for H1 is somewhat a mess. While we are bouncing off $1.10, there is no clear trend in the near term. (Longer term it is obvious we have been going higher since September 2012). H1 resistance lies at $1.1040. If this is broken, we could be heading towards the $1.11 area.
On a daily basis, the price action shows that the upside momentum of the pair has been significantly reduced since it retested the edge of the simple 50-day moving average on 24th March. The price structure reveals the lack of movement: the highs have been fading, while the Relative Strength Index is nearing the overbought mark and threatening the 50.00 centreline. On the daily timeframe to the upside, $1.1138 is a resistance level that needs attention. At the same, if the sellers decide to stand firm, due to lack of support, the price could go as low as 50-days…
