Forex Intraday: EUR/USD has reached strong resistance

27.12.2019 / 11:31

Rating:

EUR/USD

Time frame: H1

Technical analysis: The chart shows that the price of the currency pair is moving in a downward trend. During the holiday trading, the market was low in liquidity, leading to a correction to the first major resistance (Resistance 1). The price failed to stop there, breaking it and continuing the upward direction until the next significant resistance (Resistance 2). Currently, the price has been able to test the resistance by leaving a large spike behind and closing below 50% of Fibonacci. This indicates that most investors have took their profits and that the price should resume its downward movement from here.

Indicators: RSI and DeM are in their overbought territories, which supports the "sell" scenario.

At this stage, all moving averages (50 and 200) play a supportive role.

SL: 1.1160

Alternative scenario: If the price breaks through Resistance 2 and 61.8 of Fibonacci then we can see an increase to the next significant level of 1.1200.

Trader Milko Zashev

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Forex Intraday: EUR/USD has reached strong resistance

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