EUR/USD falls to retest the channel’s support - analysis 14-11-2016

The price of the EUR against the US dollar continued to decline during last week's trading, ending last week at 1.1085 level, to continue this bearish moves with the start of the current week after it faced several resistances through the end of trading last week such as the pressure of the SMAs 50 and 100, which pushed the pair to resume the negative moves with the beginning of trading this week, facing the support level 1.0710.

 

Also noted during the previous long-term trades the pair movement within a bearish channel range the price approached its upper board during the previous climb, in addition to the appearance of an overbought signal on the stochastic indicator, which added further negative pressure on the price of the pair to push it down reaching 1.0710 support level during the current trades, which coincided with the lower board of the bearish channel.

 

Generally; the price is now facing the support level of 1.0710, which if the price exceeded and held below, it is expected that the pair will target the next support around 1.0517 price Initially, with a good chance to retest the nearest resistances such as 1.0865.