EUR/USD declined a bit on Friday but found some strong buy orders near the 1.1075 (S2) zone and advanced again to trade within the 1.1135 (S1) support and the 1.1220 (R1) resistance levels. I still believe that the rally following the ECB meeting is overstretched and that a larger downside retreat could be on the cards for now. A break below the support of 1.1135 (S1) is likely to set the stage for another test of the 1.1075 (S2) support zone. Taking a look at our short-term oscillators, I see that the MACD stands above both its zero and trigger lines and points up, but the RSI edged higher, hit resistance at 70 and turned down. The mixed signals from our indicators support the case to wait for a break below 1.1135 (S1) to trust further declines. Switching to the daily chart, I see that EUR/USD is still trading between the 1.0800 key zone and the psychological area of 1.1500. Therefore, I would keep the view that the broader trend remains sideways.
