EUR/USD: the key will be the mid-range support at $1.1075/$1.1100 [Video]
|EUR/USD
The euro recovery has been nipped in the bud again as the resistance of what is now a two month trading range has kicked in. An uptrend of the past two weeks has been breached by a decisive negative candle yesterday. The question is whether this is now a consolidation or the beginning of another retracement back towards the range lows around $1.0980/$1.1000. The key will be the mid-range support at $1.1075/$1.1100. We still see positive momentum configuration (RSI high-50s, Stochastics relatively stable and MACD lines above neutral. The initial reaction early today has been positive and the hourly chart shows support at $1.1110 holding. Hourly RSI reflects a consolidation rather than correction, but losing $1.1110 support would be a warning. Resistance of $1.1175 is a lower high now that needs to be breached to re-assert bull control for pressure on $1.1200 resistance.
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