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EUR/USD Chart 15/02/2016

EUR/USD traded south on Friday, falling below the support (now turned into resistance barrier) of 1.1270 (R1). Given that on the 3rd of February the pair emerged above the 1.0985 hurdle, which is the upper bound of the sideways range it had been trading since December, I still see a somewhat positive short-term picture. However, for now I see signs that the setback is set to continue for a while. I would expect sellers to aim for the 1.1160 (S1) support hurdle and if they are strong enough to overcome it, they could drive the battle towards the next obstacle of 1.1085 (S2). Our short-term oscillators support the notion as well. The RSI fell below its 50 line, while the MACD, although positive, stands below its trigger line and is headed towards zero. There is also negative divergence between these two indicators and the price action. Switching to the daily chart, I see that the rate started sliding after it hit the prior upside support line taken from the low of the 13th of March 2015. This is another reason that amplifies the case for further retreat in the near term. However, as long as EUR/USD is trading between the 1.0800 key zone and the psychological area of 1.1500, I would keep the view that the broader trend remains sideways.

EURO

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