EUR/USD 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The bullish run we have been observing for the past two days should come to an end. EUR/USD has just come into contact with resistance at 1.0975, which is created by the May 28 high and, more importantly, by the falling trend-line. Accordingly, the present risks are heavily skewed to the downside. The initial target is the May 27 low at 1.0820 (also daily S2 and weekly S1), followed by the Apr 21 low and the lower trend-line at 1.0660. Alternatively, if 1.0975 does not withstand the buying pressure, the 200-hour SMA will likely have to come into play and stop the rally. However, the sentiment of the SWFX market is neutral, being that 48% of open positions are long and 52% are short.
© Dukascopy Bank SA
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