EUR/USD in need of some retracement

EUR/USD seems to be moving in an extended dip and it seems that sooner or later it will take some retrace. This retracement will setup EUR/USD for a nice dip towards 1.4150 level and also provide intra-day traders to sell EUR/USD with the trend. The first retracement level can be seen around 1.4340 level and traders will be initially looking to sell around that level. In case the retracement is extended, the next level to be considered can be seen around 1.4440 level.

Looking at the moving averages used in the daily charts, it can be seen that currently the market is well below all the three moving averages and in case of retracement, the EUR/USD will look to touch the medium and long term moving averages which seems to be currently crossing each other around 1.4340 level so basically this also indicates the importance of that level and that seems to indicate a good entry for an extended trade with the long term trend.

The RSI used in the daily charts is currently just above 45 level and seems to have more than enough space to allow EUR/USD to break below 1.4235 level and test 1.4150 level.

 

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