EUR/USD setting up for a nice dip

EUR/USD seems to be setting itself up for a nice downward trend and currently it is taking some retrace and traders will be looking to sell it for something around 1.3540 level and in case EUR/USD decides to extend its upward retracement, then it will look to touch 1.5750 level. In case EUR/USD manages to extend retracement till 1.3675 level, the long term and advance traders will look to average out the positions by entering the second time around that level. The initial profit target can be seen something around 1.3360 level and in case the EUR/USD seems to carry momentum below that level, the profits level can be extended below 1.3200 level.

 

Looking at the moving averages used in the daily charts, the market can be seen creeping just below the long term and medium term moving average and once it manages to move below 1.3400 level, then all the three lines will be above the market and the downward trend will be fully indicated by all three moving averages. Looking at the entry level, a good level around 1.3455 can be seen because around that level both short term moving average is currently present and crossing it is the medium term moving average.  The RSI is just above 47 in daily charts and seems to have more than enough space for EUR/USD to make an extended move towards 1.5350 level.

 

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