EUR/USD has broken below the 1.13-1.1320 support yesterday. Today is the last trading day of the week and the weekly close is eagerly anticipated as it will give us more clues on what to expect next. A weekly close below 1.1320 would be bearish. A weekly close above 1.1350 could signal that this break down was a false one.
Black line - trend line support
Despite the bullish divergence signs, EUR/USD shows no sign of a larger trend reversal to the upside and more signs of weakness and possible move to 1.11-1.10. Will a new low be followed by a new bullish divergence in the weekly RSI? If this happens we should get ready for a strong move higher. So far, price has made a failed break out above 1.15 and is breaking every support level it has tested. Price does not make any strong bounce that would challenge resistance levels. All signs remain bearish for EUR/USD. Price yesterday broke down below the black trend line support and it is important to see where this weeks candle will close. So far the most probable outcome would be to see price move towards 1.10-1.11 over the coming weeks.
The material has been provided by InstaForex Company - www.instaforex.com