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Technical Analysis – EURUSD tests critical support at 1.1300

Posted on February 5, 2015 by the XM Investment Research Desk at 8:44 am GMT

EURUSDDailyfeb5EURUSD eased towards a critical support level early today, stopping just short of the key psychological 1.1300 level. The pair is now capped by the next psychological level of 1.1400.

A break below 1.1300 would target the multi-year low of 1.1096 reached on January 26 and this will strengthen the downside bias. Alternatively, a move to the upside to break 1.1400 would give scope to target the February 3 high of 1.1532. In case of a further move higher, resistance comes in at 1.1679- the January 21 high.

Overall, the outlook for EURUSD remains bearish as the market remains below the daily Ichimoku cloud and the tenkan-sen and kijun-sen lines are falling. The RSI is in bearish territory although it is pointing north, suggesting some consolidation in the near term.

 

 



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