EURUSD tries to gather positive momentum - Technical Analysis - 29-01-2016
EURUSD closed up with a session-high at 1.0967, before bouncing lower as traders took profits, while the pair tries to gather some positive momentum which would help it keep the upward short-term trend, while trading along its upside line as shown in the attached chart. The pair then leaned on the pivotal support of 1.0885, representing the ratio 50% of Fibonacci retracement levels for a descending wave in the short term (from 1.1059 to 1.0710), while taking support from the SMA50 and the upward trend lone, along with relative power indicators reaching extremely oversold levels.
Therefore we expect the pair to rise in the coming trading, targeting the resistance of 1.0977, which represents the ratio 76.4% of the same retracement levels, provided that the support of 1.0885 holds on.
Trend
Bullish