The most popular Forex pair eur/usd is
currently trapped by intra day support and resistance levels. The pair has been
moving down in waves for around two weeks. It is being supported by 200 sma and
ema on 4 hour chart (acts as support) and is trapped by 200 sma and ema on
hourly chart. This situation won’t last long and price will eventually explode
through one of the technical levels up or down. Bearish picture is favored as
price rallied to resistance of 1.1230 today and formed a reversal candle
(bearish pin) on the hourly chart.
Price sort of holds above
1.1175 level, which was resistance yesterday and may act as support today. You
may remember that price broke the level upwards today after a bullish triangle
pattern on 1 hour and 15 minutes formed. However, the breakout occurred during
Asian session and these kind of breakouts do not usually last for a long time. If
the above mentioned support is broken, next area comes at 1.1100-1.1080. That
should hold at least for today, but not sure if it is still there by the end of
the week. Euro is also falling against British Pound, so the pressure for
eur/usd to go downwards increases dramatically.
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