22 Jan 2015
EUR/USD losses may extend to 1.1490 levels – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, technicals suggest that the EUR/USD pair might extend its losses towards 1.1540-1.1490 region on a breach of the hourly trendline support.
Key Quotes
“The EUR/USD pair formed an inverted hammer candle pattern on the daily charts as it finished higher at 1.1588, after easing-off from a high of 1.1680 levels. Not much action is seen today as the pair trades around 1.1588 levels, after having declined from 1.1630 levels.”
“Meanwhile, the hourly chart shows, the sell-off from the high of 1.1630 has pushed the hourly RSI below 50.00 levels. Moreover, the pair has a support of the rising trend line on the hourly chart located at 1.1578 levels. Thus, losses could be extended to 1.1540-1.1490, if the trend line support is breached.”
“However, given the pair has repeatedly bounced back from 1.1540 levels, the likelihood of a sharp weakness in low.”
“Furthermore, the inverted hammer at the bottom of the down trend is indicative of the trend reversal. Hence, a fresh demand for EUR can be anticipated till it trades above 1.1540. The immediate upside appears capped at 1.1640 and 1.1680 levels.”
Key Quotes
“The EUR/USD pair formed an inverted hammer candle pattern on the daily charts as it finished higher at 1.1588, after easing-off from a high of 1.1680 levels. Not much action is seen today as the pair trades around 1.1588 levels, after having declined from 1.1630 levels.”
“Meanwhile, the hourly chart shows, the sell-off from the high of 1.1630 has pushed the hourly RSI below 50.00 levels. Moreover, the pair has a support of the rising trend line on the hourly chart located at 1.1578 levels. Thus, losses could be extended to 1.1540-1.1490, if the trend line support is breached.”
“However, given the pair has repeatedly bounced back from 1.1540 levels, the likelihood of a sharp weakness in low.”
“Furthermore, the inverted hammer at the bottom of the down trend is indicative of the trend reversal. Hence, a fresh demand for EUR can be anticipated till it trades above 1.1540. The immediate upside appears capped at 1.1640 and 1.1680 levels.”