EUR/USD looking to break into a downward trend

EUR/USD seems to have broken below an important 1.3700 level and now seems to break further into a downward trend. The traders will now be looking to sell EUR/USD around 1.3700 level for a nice dip towards 1.3570 level and once it managed to break below that level, it will look to next target 1.3430 level. On the upper side the break above 1.3700 level will take EUR/USD towards 1.3860 and traders will look to sell around that level for an extended downward move. In case EUR/USD manages to break above 1.3860 level, the reversal of trend will be indicated and in that case traders will look to reverse their trades.

Looking at the moving averages used in the daily charts, it can be seen that the current EUR/USD level is below all the three moving averages and it is obvious that the EUR/USD is in a downward trend. In case EUR/USD takes a rise, it will initially look to target long term moving average which is around 1.3700 level and then the medium term moving average which will be just above the 1.3800 level. RSI is just above 43 level and seems to have more than enough space to take an extended dip.

 

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