Sasha Singh
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EURUSD : Biased Towards the Downside

EURUSD continue to be supported above the multi month lows after the easing of geopolitical tensions. Dollar firmed up against euro today after a decline on Friday when U.S. launched airstrikes in Iraq. The French industrial production data and Germany’s trade surplus came out better than the economist’s expectations which also boosted the currency against dollar.

EURUSD : 4 Hour Chart

On the 4 hour chart, the pair rose on Friday breaking the resistance at 1.3364 and 1.3380 but it was not able to hold above the resistance at 1.3435. Also seems like the 100 day SMA resisted the pair to move above it. Today the pair declined from this resistance and testing the previous support at 1.3382. If it continues to decline the next support it will find is at 1.3364. However if it will again rise, it might again try to break above the resistance at 1.3435. The 50 day SMA which was heading downwards now became flat supporting the pair and might help the pair rise.

EURUSD : Daily Chart

Now looking at the Daily chart, we can see that the 100 day SMA is just about to cross below the 200 day SMA signaling a downtrend. So the pair might decline below the key support at 1.3358. If the pair continue to decline the next support will be at 1.3291. Also seems like the 50 day SMA is acting as resistance for the pair as it tried to resist the pair in rising above it couple of times. So if the gains arrives, those will be limited.