EUR/USD Classical Technical Report 05.09
EUR/USD:The market has finally succumbed to some heavily overbought readings, with the price dropping significantly over the past few days to trade back below the 20-Day SMA. The daily close below the moving average could be significant and warn of deeper setbacks to come, however, while the market holds above 1.4155, the overall structure remains bullish. Next key support comes in by 1.4280 in the form of the 50-Day SMA, while any rallies should be well capped for now above 1.4600. A bearish outside week in the previous week does offer further evidence of the potential for a more significant move lower.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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