HomeContributorsTechnical AnalysisEURUSD – Negative Tone To Persist While 55SMA Caps

EURUSD – Negative Tone To Persist While 55SMA Caps

The Euro is at the back foot in early Monday’s trading and is holding around daily cloud base at 1.0557, following strong bearish acceleration and close below converged 10/55SMA’s after last Friday’s strong upside rejection.

Daily 55SMA (currently at 1.0587) marks strong barrier (10/55SMA bear cross is forming here) and capped the action in past five days.

Firm break below daily cloud base would generate stronger bearish signal, with completion of H&S pattern that is forming on hourly chart (neckline lies at 1.0545), needed to confirm resumption of fresh weakness from 1.0617 upside rejection (Friday’s high) and look for return to 1.0492 (22 Feb low).

Bearishly aligned daily studies support scenario.

Conversely, break and close above 10/55SMA’s would signal fresh strength and focus 20 SMA barrier at 1.0649.

Res: 1.0587, 1.0649, 1.0678, 1.0694
Sup: 1.0557, 1.0545, 1.0522, 1.0492

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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