Euro gains ground thanks to an important support. - Technical Analysis - 07-01-2016
EUR/USD rose in its intra-day levels trading, which comes after the important support of 1.0724 held on for two times in a row. That level represents the ratio 61.8% of Fibonacci retracement levels for an ascending wave in the short term (from 1.0517 to 1.1059). The pair thereafter gained positive momentum that helped it rise, along with the continuing negative pressure from the simple moving average for the period 50, and with relative power indicators reaching overly bought levels, hinting at the beginning of forming of a negative divergence in the Stochastic indicator as shown below the attached chart.
Therefore we expect the pair to fall in the next trading, as long as the resistance of 1.0852 holds on, which represents the ratio 38.3% of the same retracement levels; with the pair returning thereafter to the support of 1.0724.