EUR/USD
Short-term forecast-
The pair was rejected at higher levels and undergone through a correction. The bearish view will continue in the medium term. The pair has broken the lower supporting trend line and closed below it; this is an initial red flag. Last week, the pair was unable to cross the breakdown level breaking the initial support level (1.367), and it still trading below the trend line, this adds more fuel to the bearish views. The trading limit was fixed between 1.367-1.3775. If it closes this week below the 1.367 levels, it opens the gate for 1.3545, 1.34 and 1.323 levels. If the pair manages to hold the 1.367 levels, again we need to wait for another week. On the up side, the pair is facing strong resistance at 1.3775, which if broken, then the pair can fly up to 1.3890-1.39 levels. We prefer to sell on rally in the short term. The new up trend will start only above 1.40 levels.
3-4-day trading perspective
The pair is struggling to cross the 1.373 levels. It's trading range is fixed between 1.3735-1.368. But the daily momentum oscillators are producing a positive wave. The pair has been not responding to the positive waves for the last 4 trading sessions. It gets stuck in the trading band. RSI is still consolidating as it has been for the last couple of days. We expect something is cooking inside. In the technical view, we expect the pair will travel towards 1.3775, 1.38 and 1.3850 levels.
On the down side, the pair has strong support at 1.364, 1.36 (200-day EMA) levels. The pair will get more strength if sustained above 1.3735 levels.
Intraday-
In Asia's trading session, the pair opened on a slight bullish note trading at 1.3710. The hourly trading range is narrowed between 1.3689-1.3735 levels. The RSI in the H4 chart is giving positive divergence. We expect the green ticks will print up to 1.375 (50-hour SMA), 1.3763, 1.3775 and 1.38 levels (200-hour EMA). In the evening session, we expect the buyer bids.
Recommendations- cmp 1.3711.
Safe traders- Buy above 1.3735.
Risky traders- Buy and hold at cmp, add even more at a dip if comes.
The material has been provided by InstaForex Company - www.instaforex.com
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