EURUSD Seems To Settle Into Downward Trend

EURUSD seems to continue its dip below 1.3900 level and an important weekly level can be seen around 1.3870 level and if EURUSD manages to break below that level, then it will be next heading towards 1.3350 level. The 1.3870 level is very important one because if EURUSD manages to break below that level, then long term downward trend will be confirmed as till 1.3900 level, the dip can be viewed as retracement of 1.2800 to 1.4900 leg and therefore we might see long term traders looking to Buy EURUSD for the same reason.

As far as short term and intra-day traders are concerned, they will be looking to sell EURUSD for rise towards 1.4180 level and advance traders might look to re-sell EURUSD if it rises to 1.4290 level to average out the first position. Use of reasonable stop loss is highly recommended for the short term and intra-day traders because if EURUSD manages to break above 1.4300 level then, the long term upward trend will resume itself.

RSI is also just above 54 in daily charts and is indicating that it will support the move by EURUSD in both directions therefore it is safe to say that traders will generally look to sell EURUSD with decent stops.

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