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Technical Analysis: EUR/USD 14-day Moving Average Peaks at 1.3385

Posted by Chris Advincula on Aug 7, 2014 2:18:00 AM
EUR.RSI.8.7.2014 resized 600
10-minute Chart Study

Euro met the intraday resistance at 1.3390 and has been confined in a narrow range from the NY afternoon to the late Asian session. The 14-day moving average shows a visible and less sustainable peak at 1.3385.

The 9-month low is 1.3332 and while the euro rallied from this level to 1.3390, the Fibonacci reverse arc shows the potential retracement targets of: 1.3360 (38.2%), 1.3350 (50%) and 1.3340 (61.8%).

Resistance Levels:                           Support Levels:

1.3475   High July 25                         1.3332   Low Aug 6

1.3445   High Aug 1                           1.3318   Low Nov 8 , 2013

1.3433   High Aug 4                           1.3317   Weekly cloud base

1.3425   High Aug 5                           1.3295   Low Nov 7, 2013

Charts: WorldWideMarkets Alpha Trader

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5-minute Chart Study

Once again we see the tight consolidation movement on the intraday chart between 1.3390 and 1.3370 which appears to be less sustainable as shown on the lower RSI Chart. The relative strength index shows declining peaks from 77 at 16:30GMT yesterday to 60 at 6:00am GMT today. The RSI is classified as a momentum oscillator, measuring the velocity of direction, typically using a 14 day timeframe based on the ratio of recent price movements.

 

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