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EURUSD : Falling Resistance Trend Line Continues to Cap Gains

EURUSD : 4 Hour Chart

EURUSD continues to trade within a rising channel pattern which although signals an uptrend but the gains shall be limited as the fundamentals shows that concerns over the stagnating euro zone economy continues to weigh. On the 4 hour chart, the pair recently found resistance at 1.2836 and also seems like 200 day SMA is acting as resistance. The moving average pattern is such that the 50 day SMA earlier crossed above the 100 day SMA and now again contracting towards the 200 day SMA and might cross above it. The rising support trend line of the channel might prevent the pair in declining below it and therefore the pair might continue to follow uptrend breaking above the resistance at 1.2836.

EURUSD : Daily Chart

On the daily chart we can see that there is a falling resistance trend line which will again prevent the pair in rising further. Breaking above the resistance at 1.2836 will push the pair towards the next resistance level at 1.2988 or the falling resistance trend line, so the gains are capped.