In early February, prices tested the ceiling of the rectangle before turning lower. That has placed the focus on the floor of the formation. Breaking under the rectangle would expose the Euro’s average lowest price since the peak of its decline in 2020. On the flip side, clearing the ceiling could open the door to retesting summer 2021 highs.
EUR/USD TECHNICAL ANALYSIS
How would this translate into EUR/USD? The pair recently rejected the 1.1453 – 1.1495 resistance zone after prices formed a Doji candlestick. This followed negative RSI divergence, which showed that upside momentum was fading. The 100-day Simple Moving Average on the daily chart below also played out as key resistance.
Further Gains would see the Euro face the key 1.13650 Resistance zone, which also contains 161.8% FIBO Piercing through the latter would expose the 61.8% and 78.6% Fibonacci extensions at 1.1448 and 1.1467 respectively. the downward technical bias would likely involve a confirmatory upside close through the 1.1483 – 1.1495 resistance zone.
EUR/USD TECHNICAL ANALYSIS
How would this translate into EUR/USD? The pair recently rejected the 1.1453 – 1.1495 resistance zone after prices formed a Doji candlestick. This followed negative RSI divergence, which showed that upside momentum was fading. The 100-day Simple Moving Average on the daily chart below also played out as key resistance.
Further Gains would see the Euro face the key 1.13650 Resistance zone, which also contains 161.8% FIBO Piercing through the latter would expose the 61.8% and 78.6% Fibonacci extensions at 1.1448 and 1.1467 respectively. the downward technical bias would likely involve a confirmatory upside close through the 1.1483 – 1.1495 resistance zone.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.