EUR/USD Range Trades below Key Resistance
James Chen June 11, 2015 8:37 PM
<p>EUR/USD (daily chart shown below) has continued to trade within a defined price range after climbing from its long-term lows in April. Key support is […]</p>
EUR/USD (daily chart shown below) has continued to trade within a defined price range after climbing from its long-term lows in April.
Key support is currently around the 1.1100 and 1.0800 levels, while major resistance resides around the 1.1400 area.
Since rising from 1.0800 support in late May, the currency pair has continued to trade squarely between two major moving averages – the 200-day to the upside and the 50-day to the downside – highlighting the general lack of direction for the past few weeks.
Despite this short-term range-trading and consolidation, EUR/USD continues to trade within a major bearish trend extending back to last May’s 1.4000-area high.
Any sustained breakout of the current range should dictate whether the currency pair continues this underlying trend or if it rebounds further from its recent multi-year lows.
To the downside, a strong breakdown below 1.1100 support should once again target major support objectives at 1.0800 and, with continued bearish trend momentum, the 1.0500-area lows.
Key resistance continues to hold around the noted 1.1400 level. Any sustained rebound that pushes EUR/USD above 1.1400 should meet major resistance around the 200-day moving average and then the key 1.1650 level.
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