Technical analysis for EUR/USD for February 7, 2019

Posted On 07 Feb 2019

EUR/USD has reached all our minimum downside targets. Price is more oversold now (in RSI terms) than when it was trading below 1.13. This is a bullish sign. Bears should take short-term profits as the chances of a bounce towards 1.14 or higher are high.

Green rectangles – topping pattern repeating

Yellow rectangle – oversold RSI reading

Red line – major trend line resistance

Black lines – expected equal leg down

Purple line – expected bounce

EUR/USD has broken through the 61.8% Fibonacci retracement as expected and reached 1.1350-1.1360 which was our target. The RSI is at oversold territory and bears should be careful to protect their profits. There are high chances of at least a bounce towards 1.14 from current levels. Only a break below 1.13 would open the way for a move towards 1.11-1.10. Major resistance trend line is found at 1.1480. A break above it will open the way for a move towards 1.16. Short-term resistance is found at 1.1380-1.1395. A daily close above this area would open the way for a move towards 1.1430.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis for EUR/USD for February 7, 2019

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