EUR/USD looking to test 1.4300 level

EUR/USD seems to get back to the top of the sideways channel and the first target it is looking to challenge is the 1.4350 level and if EUR/USD manages to break above that level, it will next look to test 1.4520 level. Although the current medium term trend is in the upwards direction but keeping the long term trend in mind, it seems that EUR/USD might take a dip from either of the two level. The dip should be directed initially towards 1.4065 level and if EUR/USD manages to break below that level, then the next target can be seen something around 1.3860 level.

If we consider the moving averages, overall they are indicating the downward trend and all of them are pointing downwards. EUR/USD has managed to break above the short term moving average, indicating the upward nature of market in short term. The long term and medium term moving averages are still above 1.4400 level and if EUR/USD manages to break above those levels, then the traders will shift their focus on buying the EUR/USD. RSI has also moved above 46 in daily charts and seems to have more than enough space for EUR/USD to make an extended move in either direction.

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