Euro suffers from negative pressure. - Technical Analysis - 05-01-2016

EUR/USD suffered from high volatility in the intra-day levels, rising thereafter and hitting the resistance level of 1.0930, which represents the ratio 23.6% of Fibonacci retracement levels for an ascending wave in the short term (from 1.0517 to 1.1059), along with touching the resistance of the simple moving average for the period 50, bouncing off of it downwards, which led it eventually to break through the support of 1.0852, which represents the ratio 38.2% of the same retracement levels.

 

Therefore we expect more losses for the pair to come, targeting thereafter the support of 1.0724, which represents the ratio 61.8% of the dame retracement levels.