Euro keeps falling - Technical Analysis - 06-01-2016

EUR/USD extended its losses in its intra-day levels trading, breaking thereafter through the support of 1.0788, which represents the ratio 50% of Fibonacci retracement levels for an ascending wave in the short term (from 1.0517 to 1.1059), along with the continuing negative pressure from the simple moving average for the period 50, and a venting-off of oversold saturation that was apparent in relative power indicators like the Stochastic as shown below the attached chart, rising thereafter in a contradictory move to the pair's downward movement, which is a bad sign for the pain's next trading.

 

Therefore we expect more losses for the pair, targeting thereafter the support of 1.0645, which represents the ratio 76.4% of the same retracement levels mentioned earlier, especially so if the pair breached the support of 1.0724 first.