Technical Analysis of EUR/USD
Fundamentally things have been pretty quiet for EUR/USD and with no major event expected today it is time to focus on the technical picture of the market. The pair has been very well bid since Friday after it broke above the 1.30 level and seems now poised to test key resistance in the 1.3300 area. On Tuesday the EUR/USD fell for most of the session but managed to rebound in the end as the 1.3169 level held as support. With a bullish line capping RSI and the MACD signal line flipping over zero on the daily chart, it looks like the bears have taken the control over the bulls on this timeframe. The picture remains optimistic for the bears on the 4 hour chart as well, with a bullish alignment of the 20EMA over the 50 EMA and the market holding firmly above the 89 SMA. The recent downtrend movement of the US Dollar is a also favouring long positions in EUR/USD with target at 1.3354, the 38.2% Fibonacci level from August high to January’s low. In the alternative scenario, a break below the 23.6% Fibonacci level at 1.3081, could open the door for downward movement towards the 1.2877 area.
4 Hour Chart
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