23.03 - EUR/USD seeks to grow against the double bottom limit in the face of falling yields in the USA
- by George Solotarov
EUR/USD has risen above 1.07, after creating a double-bottom at 1.0635. US politicians failed to agree on a coronavirus stimulus package, sending investors to bonds. The dollar is falling alongside yields, while the situation in Europe is dire.
EUR/USD four-hour chart is pointing to lower lows and lower highs – a downtrend. The Relative Strength Index is above 30 – outside oversold conditions, while momentum remains to the downside. To add insult to injury, the 50 Simple Moving Average is on the verge of crossing the 200 SMA to the downside – yet another bearish sign.
Some support awaits at 1.0720, a line dating back to 2017. It is only followed by 1.0635, and the fresh 2020 low touched twice – a double-bottom. Next, 1.0580 and 1.05 are the next levels to watch.
Resistance awaits at the daily high of 1.0770, followed by 1.0835, Friday's high. It is followed by 1.0950, a separator of ranges seen last week. Another such line is 1.1050.