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TECHNICAL ANALYSIS EUR/USD 

The EUR/USD failed to break the range as the Bears brought some balance back into the potential uptrend we spoke about yesterday. This range has been hard to break with both S1 and R1 below proving to be very strong levels for both Bears and Bulls. As you can see from the below yellow channel, we are now entering into the 3rd week of this range with the Bears having a slight momentum from yesterday mid-day. This will be the 4th attempt that the EUR/USD will perhaps try to break the S1 level, after the Bulls failed to break past R1, producing a Double Top formation at 1.3879.

As the potential uptrend from yesterday failed to sustain momentum, forcing the EUR/USD to break past yesterday’s trend line and drop below the 50MA, the most probable scenario now is that the Bears will continue to put pressure and test the S1 line, a break of which will indicate a downward trend if the price convincingly stays below the S1.

On the other hand the Bulls may bring the price back up to an even playing field, which currently stands around the 50MA ~ 1.3835. Spurred momentum may see them try for a 3rd time to break the R1 level, which they have failed to do in the past 2 consecutive attempts at 1.3879. A break of which may see them test the R2 level, and this month’s High, at 1.3805.

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