EUR/USD traded lower on Monday, but the decline was stopped fractionally above the 1.1070 (S1) support zone. Then the rate rebounded somewhat. I believe that another negative leg could be on the cards, perhaps for another test near 1.1070 (S1). A dip below that line could aim for the 1.1030 (S2) barrier. Taking a look at our short-term oscillators, I see that the RSI looks ready to turn down again and perhaps fall below its 50 line this time, while the MACD, although positive, stands below its trigger line and points down. These indicators corroborate somewhat my view that the bears are likely to regain momentum at some point. 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.
Trade n Trend 