A sharp step is gonna be next
USD has been gaining power during past few weeks. In EUR/USD price chart the price line is moving in a descending channel. Today the price reached a very strong support level. Breaking below this support zone, would be followed by a descending rally for EUR.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is daily.
The strong support lays at 1.16. Two channels can be considered on the chart; the larger one on daily chart is still valid, the price has not reached the bottom of the channel yet. The RSI index is below 30. MACD is showing showing a strong descending phase. In case the support level is broken a descending rally would be expected. Sellers can target 1.141 for the first TP, the next possible target for the descending wave. On the other hand, if the support level can hold the price, bulls can be expecting an ascending market. Bulls can be expecting to see the price at 1.1777, the next possible price for EUR/USD is 1.19. In general maintaining descending channel is more possible.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.