Tuesday, April 7, 2015

EUR/USD Technical Analysis for April 7, 2015

On Monday, the EUR/USD pair saw heavy selling. The pair experienced a flash crash after reaching a price level of 1.10 yesterday with price levels dropping to 1.09.
Although the European union is still facing some issues which may affect the Euro, but the US Jobs data released on Friday were also not very encouraging. The pair is expected to see selling as it experienced quite a lot of resistance when it tried to break above the 1.10 level.

The main scenario

The pair may not have seen its worse and is expected to either trade sideways or fall further to the level of 1.07. This is mainly due to the current bearish market trend. Profit taking is advised at support levels of 1.0911, 1.0919 and 1.0925. Any rallies in the pair are expected to be met with selling due to profit taking. If the pairs price collapses, it may slide towards the previous support levels of 1.07 and the eventually the 1.05 level.

The alternative scenario

The price may start to recover. It may turn around from its bearish trend and break through the current resistance level of 1.0947. If this happens, the price may start to move ahead or again stall and trade side ways. If the price moves above the previous resistance levels of 1.10 it may turn into a bullish rally.

Resistance and Support Levels 

Support: 1.0903 1.0911 1.0925 

Resistance: 1.0947 1.0955 1.0969

EUR/USD Technical Analysis for April 7, 2015


Disclaimer:

The information in this article is for informational purposes only. Any action taken upon this advice contained in this article is not the responsibility of the author. Readers are advised to follow any financial advice only after consulting certified financial professionals.