XM Group - Analytics

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    Technical Analysis – EURUSD still neutral but bias shifts to downside

    EURUSD turned positive after opening 1% lower but the intra-day bias has shifted back to the downside. Both the RSI and the stochastics are signalling downward pressure so the near-term bias for EURUSD is bearish.

    Support would come at the May 27 low of 1.0818 – a break below this level could signal a shift out of its current range to a downward trend. Current indicators are looking mixed, supporting a neutral outlook in the medium term.

    On the downside, prices are trading below the 50- and 200-day moving averages, and the tenkan-sen line has crossed below the kijun-sen line.  While on the upside there is positive crossover of the 50-day moving average above the 100-day moving average. The Ichimoku cloud supports the neutral outlook with prices trading just within the sideways trending cloud.

    An upward momentum could see EURUSD finding resistance at the 50-day moving average at 1.1180. Failure to break above this level is likely to add to the downward pressure.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.


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