- ETH/EUR upside rejected at 21-EMA, pair slips below 400 handle to close Tuesday's trade at 396 levels.
- The pair retraces from session lows at 387 and is currently trading at 401 levels at the time of writing.
- Price action in the pair remains below major EMAs and well below the daily cloud.
- The pair is trading in a downward slopping channel and price is currently hovering around channel top resistance.
- Break above 21-EMA (412) could see further upside in the pair. Next major resistance lies at 440 (61.8% Fib).
- Downside has strong support at major trendline at 355, close below 5-DMA could see drag till 355 levels.
- Technical indicators are still bearish, but we see bullish divergence on RSI and Stochs which keeps scope for upside.
Recommendation: We prefer to wait for clear directional bias.
