EUR/USD testing important level

Although EUR/USD is caught in a sideways trend but at the current moment it is testing out an important level at 1.4260 as break below that will setup the downward trend for EUR/USD in the short term which can gradually settle into a long term downwards trend. If EUR/USD managed to break 1.4260 level, then it will be looking to gradually move towards 1.4000 level.

In case the EUR/USD takes a bounce from 1.4260 level, it will then look to target above 1.4400 level and break towards 1.4500 level. The overall scenario is still not clear for the long term traders so they might be either holding back their trades or looking to target smaller profits. On the other hand the short term and intra-day traders will be making full use of this situation as trading opportunities from both sides is open.

The moving averages are also telling the same story. The long term moving average is around 1.4330 and EUR/USD is currently below that level and the medium term and short term moving averages are around 1.4260 level and if EUR/USD manages to break below that level, then it will be below all three moving averages and will be indicating downward trend.

 

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