Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

EUR/USD Pops Above a Downside Line

EUR/USD traded higher on Monday, breaking above the downside resistance line drawn from the high of June 10th. On top of that, the rate continues to trade above the upside support line drawn from the low of May 14th, which combined with the aforementioned break paints a somewhat positive near-term outlook.

At the time of writing, the pair is testing the 1.1300 hurdle, a break above which would make us more comfortable with regards to more upside. Such a break may initially allow the bulls to aim for the 1.1353 level, marked as resistance by the high of June 23rd, the break of which may extend the advance towards the high of June 10th, at 1.1423.

Looking at our short-term oscillators, we see that the RSI lies above 50 and points up, while the MACD stands above both its zero and trigger lines, pointing north as well. Both indicators detect positive momentum and support the notion for some more advances in the near term.

In order to start examining the bearish case, we prefer to wait for a decisive dip below the 1.1190 zone, which provided strong support between June 25th and July 1st. This would also take the rate below the upside line taken from the low of May 14th, and may trigger declines towards the 1.1140, which acted as a resistance between May 29th and June 2nd. Another break, below 1.1140, could extend the decline towards the 1.1080 territory, defined as a support by an intraday swing low formed on May 29th.

EUR/USD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS