EUR/USD setting up for a dip

Euro seems all set for an extended downward trend and traders will be looking to sell EUR/USD around some reasonable level. One such level can be seen around 1.3070 level and in case the retracement is extended above 1.3085 level, it will look to extend towards 1.3190 level. The initial profit target can be seen around initially around 1.2885 level and in case the dip is extended towards 1.2805 level.

Looking at the moving averages used in daily charts, it can be seen that EUR/USD is below all the three moving averages used. The traders will primarily look to enter around the short term level which is around 1.3070 level. In case the EUR/USD extends its upward trend, the next level it will look to target will be around 1.3170 where medium term and long term moving average are converging towards each other. Looking at the RSI used in the daily charts, it can be seen that RSI is just above 32 and seems to have enough space for EUR/USD to make a dip below 1.2900 level. With further dip at this stage might push EUR/USD up for some retracement and allow RSI is open itself up a bit more.

 

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