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 Trades in a Downtrend Mode

EUR/USD traded lower today, after it hit resistance near the 1.0770 zone during the Asian day. Overall, the pair continues to trade below the downside resistance line drawn from the high of March 9th, but in order to get confident on more bearish extensions, we would like to see a decisive dip below Friday’s low, at around 1.0635.

Such a move would confirm a forthcoming lower low and may initially pave the way towards the 1.0570 territory, marked as a support by the low of April 10th, 2017. In case that area is broken as well, then we may see the bears targeting the psychological hurdle of 1.0500, which provided strong support back in February 22nd, as well as on March 2nd and 3rd, 2017. If that zone is not able to halt the slide either, then the slide may get extended towards the low of January 11th, 2017, at around 1.0455.

Taking a look at our short-term oscillators, we see that the RSI rebounded from near its 30 line, but has turned down again, while the MACD, although above its trigger line, lies within its negative territory and shows signs of turning south as well. These indicators suggest that EUR/USD may have started regaining downside speed, which supports the case for some further near-term declines.

On the upside, we would like to see a strong recovery back above 1.0980 before we start examining whether the bears have dropped their swords. The rate would be already above the pre-mentioned downside resistance line and may allow the bulls to target the 1.1050 area, which is fractionally above the peak of March 18th, and slightly below the inside swing lows of March 12th and 13th. Another break, above 1.1050, could carry larger bullish implications, perhaps paving the way towards the peak of March 17th, at around 1.1190.

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. 76% 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