EUR/USD: five consecutive negative closes [Video]
|EUR/USD
The euro has been under sustained corrective pressure now for a week. Five consecutive negative closes and bear candles has taken EUR/USD clear below the key support of the breakouts $1.1060/$1.1075 into a position where there is now a corrective outlook once more. Thursday’s closing breach of $1.1060 effectively confirmed a 110 pip top pattern in a move that now implies further slide towards $1.0960. This comes with the market trading below all the moving averages whilst momentum indicators have turned corrective. The RSI confirms the top at five week lows under 50, MACD lines are sliding following a bear cross and Stochastics negatively configured. Given how intraday gains have consistently been sold into over the past week, the market ticking slightly higher early today is likely to be seen as an opportunity for the sellers. The main initial resistance is now $1.1060/$1.1075 and the configuration on momentum suggests that pressure on the next support at $1.0990 is likely in due course. A decisive breach of $1.0990 would suggest the October low at $1.0875 should not be ruled out.
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