EUR/USD taking breather

EUR/USD seems to be taking some breather in its long term upward trend after being over bought and now traders are closing trades mostly to cash on the trades they made in the long term trend. Currently the traders will now look to buy EUR/USD  around the level where they will assume it will complete its retracement and that range falls somewhere in between 1.3200 and 1.3250 levels. In case the dip is extended by EUR/USD, then we will see the currency taking some extended dip towards 1.3065 level before traders think of buying it again and in case it manages to break that level, then we will be looking towards change of trend. On the upper side, the first resistance level that will hold the market down is 1.3375 and above that  the next resistance level is 1.3485 that is holding the market at the moment.

EUR/USD is currently below the short term moving average in daily charts but still is above the medium term and long term moving averages. Traders will look to target medium term and long term moving averages as potential entry level. RSI in daily charts seems to eased out after current dip and have more than enough space for EUR/USD to make an extended rise.

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