EUR/USD: MACD, RSI Show Divergence
AvaTrade | Apr 10, 2015 04:54AM ET
The EUR/USD pair is trading below its downward trend line on a 30-minute time frame. This confirms that the trend is towards the downside. Moreover, the price is also trading below the 50 day and 100 day moving average and this reflects that the bears are in strong control of the price. The volatility is high as the price is trading away from its 20 day moving average and it has also pierced the Bollinger® band. In terms of patterns, we do not have any specific pattern formed for the price except that the price is trading in downward channel.
The RSI and the MACD indicators are showing signals of divergence in relation to the price action which means that while the price is making the lower low, the MACD and the RSI have not confirmed this and this translates that the change is direction of the trend could be on the cards.
/h3
Resistance Levels
1.0883-1.0854 Minor
1.1035-1.1008 Major
Support Zone
1.0574-1.0546 Minor
1.0492-1.0463 Major
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.