Monday, September 9, 2013

EUR/USD Retreats From Long-Term Downtrend Line

EUR/USD (daily chart as of September 9, 2013) was unable to surpass the long-term downtrend line and broke down below its daily EMA 20 on August 29, after testing the trend line for seven trading sessions (pink rectangle shape on the chart). Price found temporary support at its daily EMA 200 on September 5 and September 6, and has since risen to test the EMA 20, which has served as strong support since July 12. The MACD is about to cross above the zero line, and the RSI is rising to test 50.

Bullish if price can hold the EMA 200.
1st resistance: EMA 20
2nd resistance: the long-term downtrend line
3rd resistance: 1.3450 (August 20 high)

Bearish if price is unable to break above the EMA 20.
1st support: 1.3180/90 (September 6 high)
2nd support: EMA 200
3rd support: 1.3000 (key support/resistance)

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