EUR/USD is trading lower today after the flash crash from last week took the pair to a high of 1.0650. Price is now 1.0481 and it appears that US dollar bulls are again ready to take control over the market.
On the last Friday’s session the EURUSD initially rose with a narrow range but found enough selling pressure at the 50-day moving average to reverse and closed near the low of the day, although the currency pair managed to close above Thursday’s high, which suggests a weak bullish momentum.
The currency pair is trading above the 10-day moving average that should act as a dynamic support but continues to trade below the 50 and the 200-day moving averages that should act as dynamic resistances.
The key levels to watch are: a Fibonacci extension at 1.0666 (resistance), a daily resistance at 1.0622, the 10-day moving average at 1.0444 (support), a daily support at 1.0462 and the new multi-year low at 1.0352(support).
EUR/USD is moving to the downside after forming an impressive shooting star candlestick on the daily time-frame. Next target is likely the support at 1.0400 and if it breaks out below that level it will probably test the previous low at 1.0352.
On yesterday session, the EURUSD fell with a narrow range and closed near the low of the day, in addition managed to close below Friday’s low, which suggests a strong bearish momentum.
The currency pair is still closing above the 10-day moving average that should act as a dynamic support but continues to trade below the 50 and the 200-day moving averages that should act as dynamic resistances.
The key levels to watch are: a Fibonacci extension at 1.0666 (resistance), a daily resistance at 1.0622, a daily support at 1.0462, the 10-day moving average at 1.0450 (support) and the 2016 low at 1.0352(support).
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