Forex: EUR/USD: Bulls and bears hoof to claw at trendline

on Aug 7, 2013
Listen Wednesday August 7th_: In European trading today, the EUR/USD initially fell to an intraday low of 1.3264, breaking the 1.3287 minor support and testing the next at 1.3266, which held and the pair has since been rising. The 89- and 200-hour simple moving averages have also provided support for the ascent. The quote has reached an intraday high so far at 1.3323, which is above the trendline and passing through the tops of 1 February, 19 June, 31 July, yesterday and today. Now though, the 1H and 4H candles have closed below the line, offering great resistance. Currently the pair is changing hands at the 1.3300 psychological level.

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Faux outbreaks above the trendline may bring the pair to the 19 June high of 1.3415, where strong resistance will very likely be encountered, with a cluster of pending shorts ready to push the pair down under.
The MACD (9,12,1) is still in divergence mode on the 1H chart, which is a bearish sign suggesting that the price may depreciate in the short term. That eventuality, should it transpire, plus the pressure added by the trendline could see the price drop towards the 1.3000 level, but before then the descent will need to overcome the lows of 25 July at 1.3164 and 18 July at 1.3065.
Contrariwise, a bullish viewpoint is supported by the price action currently happening above the 89- and 200-period simple moving averages on the 1H, 4H and daily time scales.
Today’s resistances: 1.3315, 1.3345 and 1.3370.
Today’s supports: 1.3290, 1.3245 and 1.3220.


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