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EUR/USD Today Technical Report 02/05/2016

EUR/USD surged on Friday, breaking above the key resistance (now turned into support) zone of 1.1440 (S1). The short-term outlook currently looks positive, but I prefer to wait for a clear close above the psychological figure of 1.1500 (R1) before getting confident on further advances. Something like that could set the stage for extensions towards the 1.1620 (R2) territory, defined by the peak of the 25th of August. Shifting my attention to our short-term oscillators, I see signs that a setback could be on the cards for now. The RSI has topped within its overbought territory and looks able to fall below 70 soon, while the MACD, although above both its zero and trigger lines, shows signs that it could start topping as well. As for the bigger picture, given that EUR/USD is still trading within the wide range between the 1.0800 key obstacle and the psychological area of 1.1500, I would consider the longer-term outlook to stay flat. A clear close above the 1.1500 zone is the move that could turn the medium-term picture positive.



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