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EUR/USD Today Technical Report 06/04/2016


EUR/USD traded lower on Tuesday, but the decline was stopped once again by the 1.1335 (S1) support barrier. Then the rate rebounded, hit resistance at 1.1400 (R1), and started sliding again. The price structure on the 4-hour chart remains higher peaks and higher troughs, something that keeps the short-term outlook somewhat positive. However for now, I see that the retreat may continue and aim for another test at 1.1335 (S1). A break below that barrier and the upside support line taken from the 10th of March could shift the short-term outlook to the downside and perhaps initially aim for the 1.1300 (S2) zone. Our short-term oscillators detect negative momentum and support the case that the pair is poised to continue trading lower. The RSI turned down and now looks able to fall below its 50 line, while the MACD stands below its trigger line and could be headed towards zero. 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 (R3). Therefore, I would keep the view that the broader trend remains sideways.



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