FxWirePro: EUR/USD bears resume with shooting star and spinning top after equidistant travel of channel, interim rallies to hinder below bearish DMA crossover

On daily charts, we don’t encourage longs despite today’s upswings. Instead, we are slightly bearish bias due to following technical indications.

Shooting star & bearish engulfing candles were traced out 1.1217 and 1.1147 levels at stiff resistance keep current prices below DMAs, more slumps likely on bearish DMA crossover.

For today even though we see upswings, but momentum is not in bears favor and on the southwards downswings are struggling to break below 7WMA levels, the breach and sustenance below these levels would likely resume more bearish rallies and target upto 1.0950 levels. Otherwise, we bet upon mild upward targets upto 1.1202 levels.

Please also be noted that the bulls made equidistant travel after breaching channel resistance, but failure swings at channel line to extend slumps, drop below 7EMAs to resume bearish swings.

The US unemployment claims have been the hot topic for the day and US inflation continues to be in the center of attention for tomorrow. We look for a fall of 0.2% MoM. If that is the case, this may weigh a little on the EUR, which has been under pressure most of this week, ahead of the US data.

RSI indicates stern bearish momentum on daily terms and indecisiveness to the major trend.

While same has been the case on stochastic curves, this leading oscillator has also been bearish bias at oversold zone and indecisive on monthly terms.

While MACD indicates the woolliness in the prices in daily terms. Overall, you see no traces of indications of robust uptrend at this juncture.

Trade tips:

On intraday terms, as both stochastic and RSI noise with strong momentum in buying interests as they are converging to the ongoing downswings, we advocate buying tunnel spreads with upper strikes at 1.1202 and lower strikes at 1.1120 levels.