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EUR / USD: bears do not reduce the pressure

Tatiana Norkina, an analyst at FBS

Once again we saw a sharp weakening of the euro against the US dollar on Friday. During the day the currency pair was at minimums, which had been formed in the middle of last week - 1.2280. This may mean that soon one can see not only 1.2200, but 1.2000 level, where is a strong long-term support.

All indicators point to a continuation of the bearish trend now. Thus, the oscillators continue moving down, and  Ichimoku lines reinforce the negative sentiment of the indicator.

At the same time, Chinkou Span is oversold. Thus there is a a high probability of short-term recovery pair just above the 23th figures and sales from current levels will be risky.

Therefore, we will remain on the side of the bears and sell the pair on pullbacks to the Tenkan and Kijun lines.

Technical levels: support - 1.2270; resistance - 1.2300, 1.2325.

 

Trading recommendations:

 

1. Sell - 1.2325; SL - 1.2345; TP1 - 1.2270; TP2 - 1.2200.

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