EUR/USD: Waiting For Confirmation Signals
ICN.com | Aug 07, 2014 07:17AM ET
The pair failed to remain stable below 1.3375 accompanied by forming a positive candle yesterday that closed above Linear Regression Indicator 34 and above 50% correction at the referred to 1.3375. Failing to stabilize below the referred to level with daily closing threatens the intraday negative expectations, especially that RSI is showing an unconfirmed positive divergence.
On the other hand, we cannot confirm bringing positivity back in light of continue trading below 1.3400 - 1.3420, in addition to the negativity showing on Linear Regression Indicators. Hence, we prefer to remain neutral intraday waiting for confirmation signals.
The pair is still fluctuating around SMA 100 ending yesterday's trading below it, which forms a resistance now at 1.6855, so the downside move is still valid for the upcoming period waiting to move towwards 1.6625 mainly. Stochastic is gradullay losing its positivity supporting the suggested expectations that remains valid unless the pair stabilized above 1.6855 then 1.6975.
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The pair dropped sharply after SMA 100 formed a strong resistance in front of the bullish attempts supporting the bearish correctional move expectations, and its next targets at 0.9190. We wait for further bearish bias today as long as the pair is stable below 0.9390.
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