EUR/USD has been consolidating in Asian trade, last exchanging hands just above the 1.12 handle, an area that was old resistance and that has not turned key support after the successful bullish rotation higher during March 16-17th.
According to Valeria Bednarik, Chief Analyst at FXStreet, in order for sellers to regain the upper hand in EUR/USD, a clear break of 1.11/1120 is now required.
Key Quotes – Valeria Bednarik
“The pair now develops within a descendant channel, which roof stands at 1.1230/40 for this Wednesday. The previous bullish trend has been affected with this retracement, although it will take a clear break below the 1.1100/20 region, a major static support, to confirm a shift towards the downside.”
“In the meantime, the 4 hours chart presents a marked bearish tone, given that the 20 SMA has turned sharply lower above the current level, whilst the technical indicators keep heading south below their mid-lines. A recovery above 1.1245, however, should see the pair resuming its advance, and probably regaining the 1.1300 level.”
(Market News Provided by FXstreet)