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Technical Analysis: Euro Reversed Gains From 1.1300 to 1.1100 on Profit-Taking

Posted by Chris Advincula on Nov 9, 2016 3:19:39 AM


(Nov 9 Wednesday) The euro surged 308 points to the intraday high of 1.1298 from the low of 1.0990 as the U.S. dollar fell on the early results of the U.S. Presidential election showing Donald Trump ahead in the polls as of 1:00am EST. 

The euro has met profit taking at 1.1298-1.1300 level and eased down to 1.1107  (Fibonacci 61.80% retracement from 1.0990).

The 21-day moving average shows a significant price decline from 1.1200 to 1.1200. The 14-DMA on the other hand, shows a dip to 1.0950 and rebound to 1.1000. There are noticeable descending tops from 1.1630 (May 2), - 1.1422 (Jun 27) - 1.1365 (Aug 22).

The first near-term resistance level is 1.1365 while the second one is 1.1422.

The 1..1365 resistance also happens to be the overbought 14-day 70 RSI level from Aug 22. And conversely, the chart low of 1.0850 from Oct 24 is the oversold 30 RSI level which displayed the prompt rebound to 62.38. (spot 1.1300).



Topics: EURUSD, US Dollar, technical analysis, Forex


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