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The Euro failed once again to trade higher against the US dollar and after a minor correction moved back lower. There was a sharp reaction noted recently around the 1.0880 levels where sellers stepped in to ignite a downside reaction in the EURUSD pair. The economic releases also played a part, and today in the Euro zone there is no major release. One low risk event lined up is the French Industrial Output representing the volume of production of French industries such as factories and manufacturing will be released by INSEE. The market is expecting a decline this time compared to the increase of last time.
There is a major bearish trend line formed on the hourly chart of the EURUSD pair, which is likely to act as a hurdle for the pair if it moves higher in the near term. Currently, the pair is finding buyers around the 1.0640 levels, and correcting higher. Initial resistance is around the 23.6% fib retracement level of the last drop from the 1.0880 high to 1.0640 low. The most important one is around the highlighted trend line. One key point to note from the charts is that the pair is trading well below the 100 and 200 simple moving averages, which is a bearish sign. Moreover, the hourly RSI is also below the 50 level.
If the EURUSD continues to move lower from the current levels, then a break below the recent low could take it towards the 1.0600 levels.
Overall, one might consider selling rallies in the EURUSD pair as long as it is below the highlighted trend line.