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    Technical Analysis – EURUSD sees more downside pressure, remains inside Ichimoku cloud

    EURUSD has seen some downside pressure this week, bringing the pair to the lower end of the 1.08 handle.

    There is a barrier to the upside around 1.0850 and this is the 38.2% retracement of the December bullish run from 1.0520 to 1.1058.

    The technical outlook is neutral-to-bearish, given that the market remains below the 200-day moving average and prices are stuck inside the daily Ichimoku cloud. The tenkan-sen has crossed below the kijun-sen line, giving a bearish signal.

    Momentum is lacking upside potential, with the RSI dipping back below 50 into bearish territory.

    There is important support at the January 5 low of 1.0709, which is near the 61.8% Fibonacci retracement level. A break below this support would strengthen the bearish bias. Below this there is a key psychological level at 1.0500, which if breached, would trigger another downleg and bring a resumption of the downtrend that started from 1.1713 (August 2015 peak).

    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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