Euro attempts to generate some positive momentum - Technical Analysis - 18-01-2016
EUR/USD fell at the end of last week as traders reaped profits of the pair's previous rises, and with the trading confined along the main upward trend as shown in the attached chart, and with positive pressure from the SMA50, attempting to stimulate some positive momentum from that last decline as to help it rise again and confirm the breach of the important resistance of 1.0930. It's worth noting that relative power indicators have reached oversold levels, hinting at the start of forming of a positive divergence in the Stochastic as shown below the attached chart.
Therefore we expect the pair to rise in the coming trading, as long as it settle above the resistance of 1.0930, targeting thereafter the pivotal resistance of 1.1030.
Trend
Bullish