EUR/USD over sold

EUR/USD after taking a good dip seems to be getting a bit oversold and it is fair to say that sooner or later either it will take some good retrace or it will look to settle for a short term sideways trend. This retracement will surely excite the traders and both intra-day and long term traders will look to sell EUR/USD for rise to retracement levels and catch EUR/USD in a long term downward trend. The first such level can be seen something around 1.3000 level which is also an important psychological level. If the retracement is extended above 1.3000 level, then the next level can be seen around 1.3160 level. On the lower side, 1.2860 seems to be holding an important weekly level and once EUR/USD manages to break that level, the next target can be seen around 1.2720 level but that level seems a bit far cry at the moment.

 

Looking at the moving averages used in the daily charts, it can be seem that EUR/USD is comfortably below all the three moving averages and the entry target can be seen around 1.3000 level around which the short term moving average is at the current moment and 1.3160 level around which the medium term moving average is at the moment.

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