EUR/USD: The market has been locked in a choppy consolidation since basing out by 1.4215 in late December, and it is unclear at this point which way we will go from here. The 200-Day SMA is yet to be challenged, and dips throughout the consolidation have been very well supported just ahead of the longer-term SMA. A break below this SMA will now be needed to open the door for a fresh downside extension and confirmation of a more significant structural shift. Key short-term resistance has been taken out at 1.4485 and this could expose some additional gains to previous support by 1.4625, however ultimately, we continue to retain a bearish outlook and will look for opportunities to sell on approach to 1.4625.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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