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Technical Analysis:  EURUSD Toppish at 1.1450. 14-DMA Breaks Triangle Line at 1.1360

Posted by Chris Advincula on Apr 14, 2016 7:39:56 AM


(April 14 Thursday) The 8-hour chart shows the EURUSD movement with a good rebound from the 1.0825 (low from Mar 1) to the high of 1.1465 (Apr 11) with the ascending bottom lines meeting at 1.1400. A symmetrical half triangle forms and toppish at the high of 1.1465 while the 14 DMA toppish as well at 1.1400 and came off to 1.1360. The 30 DMA also shows a correction at 1.1375.

There is a noticeable break from the triangle at 1.1360 and we are now currently at the 1.1250 level. Taking the high of the triangle base at 1.1465 less the low of 1.1175 = 0.0290 pips. The break at 1.1360 - 0.0290 = 1.1070 a potential price objective if the downtrend continutes in the near term. 1.1070 is also the 30-DMA support and low from Feb 15-16. 

The 14 DMA resistance line runs at 1.1400, 1.1260 and support at 1.1175. The 14 day relative strenght index shows the 70 level as the overbought level while the 30 level marks the oversold territory, which implies a rebound of the euro possibly at the 1.1175 level before it goes lower. The 12-day expontential moving average and the histogram on the MACD chart fell below zero to -0.0016. The 26-day EMA has eased down as well from +0.0050 nearing the zero borderline and suggestive of a posible break at zero to negative territory.



Topics: EURUSD, EURO, technical analysis


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