EURUSD Bulls Stretch Price to 1.1600 Level As Technicals Point to Near Term Correction

EURUSD Price Analysis – July 23

EURUSD’s upward traction stopped from its rise to a level of 1.1600 as the technical view of the pair indicates a correction. The Euro’s advance edges lower on Thursday in early European trading, as increasing U.S./China tensions affect risk sentiment. China is set to respond in retaliation to the US shutting of its Houston embassy.

Key Levels
Resistance Levels: 1.1750, 1.1685, 1.1606
Support Levels: 1.1550, 1.1422, 1.1350
EURUSD Long term Trend: Bullish
During Thursday’s European trading hours EURUSD traded close to 1.1598 level, confronting rejection at 1.1602 level. The pullback may be pushed farther down to levels beneath 1.1550, as the relative strength index (RSI) on the daily chart indicates an overbought condition.

The trend according to the daily chart may stay bullish as long as the pair holds beyond the ascending trendline and both MAs beyond the 1.1400 marks. A required downside correction of EURUSD is anticipated, as the pair has grounds to correct downwards.
EURUSD Short term Trend: Bullish
At this point, the intraday bias in EURUSD stays on the upside. Present 1.0635 level rally may attempt a 100 percent projection of 1.0784 to 1.1422 levels from 1.1183 next to 1.1750 level. If the predicted resistance persists, a reversal to the south is probable to appear.

On the downside, a support level breach of 1.1400 is required to indicate short-term tops. Anything else, the forecast in the event of a fall must stay bullish. So for now, note that the pair may gain support from the 5 moving average and the 1.1550 horizontal support level.

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