EUR/USD Pauses Decline And Consolidates
XM Group | Dec 16, 2014 04:23AM ET
The overall trend for EUR/USD is bearish but the pair has been consolidating recently after a correction higher. There was a bounce from 1.2246 to the 78.6% Fibonacci retracement level of the upleg from 1.2040 to 1.3992. This level comes in at 1.2460. The RSI has flattened out and is hugging the 50 point level, signaling consolidation for the time being. Likewise the tenkan-sen and kijun-sen lines have also flattened out to indicate a pause in the recent decline in EUR/USD.
Support is seen at 1.2246 – a 2-year low hit on December 8. A bounce to the upside will see barriers at the key psychological level of 1.2600.
A decisive break of 1.2246 will see a resumption of the downtrend which has been in place since the May high of 1.3992.
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