EUR/USD Classical 07.20
EUR/USD: On the one hand, we have seen a 3 day close above the 100-Day SMA with the market very well bid over the past several weeks to suggest that more significant upside is to be expected. However, on the other hand, the broader downtrend still remains intact and there is also the strong possibility for a bearish resumption with daily studies now looking stretched and the market reversing course after finally taking out 1.3000 on Friday. As such, we recommend that traders stay on the sidelines and look to see where the market settles at the Tuesday close for a better indication of where we could be headed. Next key topside resistance comes in by 1.3090, while there is no real support until 1.2780.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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