EUR/USD taking a breather before dip

EUR/USD is looking to take some breather and once it manages to gather some space, it will look to resume its long term downward trend. Currently traders will look to sell EUR/USD on rise to complete it retracement towards 1.3440 level and sell EUR/USD around that level. In case the retracement is extended above 1.3440 level, the next level for entry can be seen around an important weekly level at 1.3500 level. On the lower side, the initial targets can be seen around 1.3260 level and once EUR/USD manages to break below that level, the next target will be 1.3155 level.

Looking at the moving averages used in daily charts, it can be seen that the EUR/USD is below the long term and the medium term moving averages and is just above the short term moving average and once EUR/USD manages to break below 1.3260 level, it will be below the short term moving average and an extended downward move is expected after this and that is the main point that will be interesting for the long term traders. RSI is just below 39 in daily charts after taking some retrace, it seems to have open up nicely to setup EUR/USD to make an extended move towards 1.3155 level.

 

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