EUR/USD Daily chart: BEARISH BREAK GAINS TRACTION.

EUR/USD TECHNICAL UPDATE: BEARISH BREAK GAINS TRACTION.
Yesterday 16th February, price action closed right on trendline support which has now turned back into resistance. There was always going to be a question of whether the bearish move would attract the necessary momentum for a follow through and, admittedly, it is still too early to gauge but early indications appear to support that assumption.

In breakout situations it is often prudent to watch for a move back to resistance before assessing a bearish continuation thereafter. Support lies at 1.0615 heading into the weekend, followed by the 1.0450 zone of support. Resistance becomes the diagonal trendline followed by 1.0805. The MACD indicator suggest that momentum favors bears and the RSI reveals that the market is still some way from being considered oversold, allowing further room to the downside.

EUR/USD Daily Chart