EURUSD could close this week above the psychologically important 1.30 but taking a look at the daily charts there are several developments which raise some questions about how far EURUSD will be able to raise:
EURUSD broke below the 100 day SMA moving average.
This will naturally be now a level of resistance. The 100 day SMA is currently about 1.3150 and as you can see in the chart i was drawing a horizontal trend line which shows quite clear that we have at about this 1.3150 level a huge resistance zone.
Basically I assume EURUSD to be caped at this level and in the short time not expecting a breakout above 1.3150
On a weekly chart, the 55 week SMA is at 1.2910 which should function as a resistance to the downside (See the lower horizontal trend line). This level held at the 14th of march when there was the first attempt to break below this major level of support. There will be at least another attempt next week.
Basically, my expectation is that EURUSD will be ranging at a few days now between 1.2910 and 1.3150 before a second upward impulse will
start driving EURUSD against 1.35
I currently have one long trade pending order at 1.2910 which reflects the trading ideas mentioned above.
Have a nice weekend
EURUSD broke below the 100 day SMA moving average.
This will naturally be now a level of resistance. The 100 day SMA is currently about 1.3150 and as you can see in the chart i was drawing a horizontal trend line which shows quite clear that we have at about this 1.3150 level a huge resistance zone.
Basically I assume EURUSD to be caped at this level and in the short time not expecting a breakout above 1.3150
On a weekly chart, the 55 week SMA is at 1.2910 which should function as a resistance to the downside (See the lower horizontal trend line). This level held at the 14th of march when there was the first attempt to break below this major level of support. There will be at least another attempt next week.
Basically, my expectation is that EURUSD will be ranging at a few days now between 1.2910 and 1.3150 before a second upward impulse will
start driving EURUSD against 1.35
I currently have one long trade pending order at 1.2910 which reflects the trading ideas mentioned above.
Have a nice weekend
Attached Image (click to enlarge)
