Thursday, March 23, 2017

Will the EUR/USD break above its 200 day EMA?

The Euro versus the Dollar has been in a very good bullish trend, which has taken it to the 1.0800 zone where it coincides with the 200 day EMA (blue line), but it is currently trying to stall its trend at that level. On the daily chart we can see that the pair has been having difficulties in trying to break above the 1.0800 level, but at the same time it has neither been able to break above the 200 day EMA. The last time that the EUR/USD broke above the 200 day EMA was on November 9th of last year and even then the breakout was temporary, because once the pair got to the 1.1300 level, it bounced from that level to the downside. On the current visit that the pair is making to the 200 day EMA, it may try to bounce to the downside and maybe reach the low at the 1.0493 level. To the upside, in case of a bullish breakout, any of the round number levels from the 1.0900 to the 1.1300 may act as resistance.


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