Will the EURUSD Downtrend Continue?

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HotForex Market Review
HotForex Market Review

EURUSD has been trading close to the key 1.13 point, after a long downward trend which started at the beginning of the month, but has still been unable to break through it. Brexit uncertainty appears to have taken its toll on the Euro, while the downwards revisions regarding the Euro Area’s future growth have also had a strong impact.

At the moment, the main Support level for the Dollar is at 1.13, which, if broken, can lead the pair towards the next key Support level at 1.1288 (Fib. 100%). The immediate Resistance level stands at 1.1328, with stronger Resistance at approximately 1.1350. At the moment, the 200-HMA appears to be far off, while the short-term MA continues to remain below the long-term MA, despite an effort to cross above earlier today. The MACD and Stochastics appear to point to the downside; the latter’s short-term curve could indicate a potential correction as it has crossed the 20 level, even though the short-term line keeps pointing downwards. A similar path can be observed for the RSI, which has been flirting with the 30 level, marginally crossing it at the moment.

Finally, the lack of data releases related to the pair is expected to allow more room for technical analysis, even though potential announcements regarding the trade talks with China, as well as any surprise data releases due to the government shutdown will also have an effect on the Dollar.

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Dr Nektarios Michail

Market Analyst

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