Mar 01 2019

EURUSD- Hovering close to its descending triangle resistance

EURUSD:- On a daily chart, it is noticed that from last couple of months the pair is trading in a converged range. The convergence of price action is finally taking the shape of a descending triangle – doesn’t seems to be a perfect one (like a textbook formation), as the bottoms are actually not equally horizontal. The pair is likely to surrender its gains after its attempt toward the descending trend-line resistance – in the previous scenarios the zone worked well as a strong resistance and at present is coming at around 1.1420-30 mark. Immediate support area for EURUSD (lower horizontal line) on the daily chart is seen towards 1.1240-50, the region is suppose to be the possible target for the pair if the prices turns back from the said resistance. Momentum indicator – Stochastic slow turned back from its overbought zone with %K and %D bearish crossover, while MACD (5,35,5) is hovering below its zero-line – both are signalling that the ball is still in bears court. On the other hand we can see the price action is trading below its 200- day simple moving average, a another signal to accompany the above view.

Conclusion:- According to the analysis, the pair probably take a downturn from 1.1420-30 mark for the target of 1.1250. A daily close above 1.1450, will negate the above view.