EUR/USD breaches strong support early in session

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 30% 28% 6.67%
Shorts 70% 72% -2.86%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Sell Sell
Stochastic (5; 3; 3) Buy Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

Despite trying to accelerate against the US Dollar early on Friday, the common European currency failed to overcome the psychological 1.25 mark. The subsequent reversal was followed by a breach of the 55-hour SMA and the monthly R3 which left the rate between this resistance and the 100-hour moving average. 

Technical indicators are generally neutral, thus pointing to a possible period of consolidation. Given that the Euro managed to breach the 55-hour SMA, it is likely that traders see the strengthening of the bearish sentiment within this session and even beyond. 

The dashed line on the chart represents a three-week trend-line. A breakout of this line and the 100-hour SMA and the weekly PP circa 1.2380 should confirm the aforementioned scenario.

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