Trade n Trend

Home » EURO » EUR/USD Daily Chart 04/03/20016

EUR/USD Daily Chart 04/03/20016

EUR/USD rebounded strongly on Thursday, breaking above the resistance now turned into support line of 1.0900 (S1). Nevertheless, the rally was stopped slightly below the resistance zone of 1.0985 (R1). Given that the rate is still trading below the downtrend line taken from the 16th of February, I maintain the view that the short-term trend remains negative. I would expect the bears to take control again at some point and perhaps aim for another test at the 1.0900 (S1) line. A break below that level could set the stage for a new test near the 1.0845 (S2). Today we get the US employment report for February. A strong report could be the trigger for such a move. Taking a look at our oscillators though, I see signs that the rebound may continue for a while, ahead of the US data. The RSI stands above its 50 barrier and looks ready to turn up again, while the MACD, although negative, stands above its trigger line and looks to be headed towards its zero line. Switching to the daily chart, I see that EUR/USD is still trading between the 1.0800 (S3) key zone and the psychological area of 1.1500. Therefore, I would keep the view that the broader trend remains sideways.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: