EUR/USD trying to get into momentum

EUR/USD seems to be getting back into the long term downward trend but the overall situation is that it is getting a little over-sold and this is pushing EUR/USD upward and not allowing it to break into an extended downward move. The traders will look to sell EUR/USD on rise to some retracement level and once such good level can be seen around 1.2785 level and in case EUR/USD extend its upward move, then it will look to next touch 1.2920 level and around that level the long term traders will be really interested in selling EUR/USD. On the lower side 1.2635 seems to be the target level and not much dip below that level is expected at the moment as the market is over-sold.

 

Looking at the moving average used in the daily charts, it can be seen that EUR/USD has just managed to sneak below all the three moving averages and traders will be looking to sell on retracement toward medium term moving average which can be seen around 1.2920 level and that is the level mostly traders will be focusing on. Looking at the RSI used in daily charts, it is around 31 and seems to be a bit over-sold and not much downward dip seems possible at this stage and retracement seems very much in next couple of days.

 

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