EUR/USD runs into overhead resistance, price may fall further
EUR/USD is in a prolonged downtrend for quite sometime now. After reaching the multi-year
lows at 1.03 level, EUR/USD staged some pullback and managed to reach close to the 1.08 level.
However, the recovery seems to have run out of steam. A combination of technical and fundamental
factors may cause EUR/USD to tumble in the coming days.
The broken support level at 1.08 might turn into resistance. In addition to this, the 100-day EMA lies just
above it which might offer strong dynamic resistance. Furthermore, geopolitical disturbances and concerns
about global financial health will likely weigh on the Euro as the US Dollar is expected to stay strong.
The confluence of the above factors can mean that the circular area that I have highlighted in my chart
will likely be a strong resistance level.
Possible Signal
Sell EUR/USD between 1.08-1.09 with Stop loss about the resistance and TP at 1.0350
lows at 1.03 level, EUR/USD staged some pullback and managed to reach close to the 1.08 level.
However, the recovery seems to have run out of steam. A combination of technical and fundamental
factors may cause EUR/USD to tumble in the coming days.
The broken support level at 1.08 might turn into resistance. In addition to this, the 100-day EMA lies just
above it which might offer strong dynamic resistance. Furthermore, geopolitical disturbances and concerns
about global financial health will likely weigh on the Euro as the US Dollar is expected to stay strong.
The confluence of the above factors can mean that the circular area that I have highlighted in my chart
will likely be a strong resistance level.
Possible Signal
Sell EUR/USD between 1.08-1.09 with Stop loss about the resistance and TP at 1.0350