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.
Click here to access the Economic Calendar
Dr Nektarios Michail
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
