After hitting a high of 1.1466 last week, EUR/USD has been retreating. Let’s follow up with the pair after it broke a rising trendline.
When we look at the 4H chart we see 3 bullish factors that are broken. We mentioned the rising trendline. Price also fell below the 100-, and 50-period simple moving averages. Lastly, the 4H RSI fell below 40, showing loss of the prevailing bullish momentum.
Now as price approaches 1.1130, we might see a pullback in the near-term, but if the price top is to stay, we should see resistance in the 1.13-1.1325 area.
To the downside a conservative target would be the 1.1065 support pivot. But we should be ready for traders to clear that low to test the 1.10 area, where another rising trendline and the 200-period SMA reside.
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