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Technical Analysis – EURUSD in neutral but bearish below 200-day MA

EURUSD has reverted back to a neutral trend. The flat tenkan-sen and kijun-sen lines and the horizontal Ichimoku cloud support the lack of direction in the market. EURUSD has been in a broad range between 1.0818 and 1.1466 in the last four months and the 1.1000 is an important psychological level which the pair has been pivoting around. This level also provides strong support, which if breached would take the market down towards the 12-year low of 1.0461 reached on March 13. To the upside, the top of the range at 1.1466 will act as a barrier for any moves higher.

In the bigger picture, we can see that the EURUSD is consolidating after a downtrend from the peak of 1.3992 in May 2014. The market remains below the 200-day moving average which has a downward slope, so the possibility of a shift to an uptrend is very unlikely in the near term unless we see a decisive break above the key 1.1500 level.

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