EUR/USD taking breather

EUR/USD seems to be taking some breather after settling into an upward trend. Although the sideways range between 1.4700 and 1.4100 levels seems to stay there and EUR/USD seems to keep its short term trends between these two levels. At the current moment EUR/USD is moving in an upward trend and is looking to take some retrace. The retracement is expect to be targeted towards 1.4425 level and traders will be looking to buy around that level for initials targets around 1.4550 level. If EUR/USD managed to break above 1.4550 level, then the traders will look to extend their profits to 1.4700 level. On the lower side, break below 1.4425 level will take EUR/USD towards 1.4260 level.

If we look at the moving averages in daily charts, we can see that they are also crossing each other around 1.4425 level in the upward direction and thus indicating the start of upward trend. Keeping that in mind we can see that the level at 1.4425 holds the key as bounce from that level is expected and break of that level will trigger the reversal of trend. RSI is just below 56 in daily charts and have equal space to move in both directions and it will not play any part in the movement in any direction.

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