Euro tries to recover some losses. - technical analysis - 18-12-2015

EUR/USD advanced modestly in the intraday levels, attempting to recover some of the previous losses in the short term, along with the continuance of the negative pressure from the simple moving average for the last 50 hours; further more, the pair is affected by a negative pattern that was formed previously in the short term, which is the rising wedge, taking in notice that relative power indicators have reached extremely overbought levels.

 

We therefore reiterate our negative forecasts for the pair, especially if it settled below the level 1.0851, which represents the ratio 50% of Fibonacci retracement levels for an ascending wave in the short  term (from 1.0517 to 1.1058), targeting thereafter the support of 1.0787, which represents the ratio 61.8%.