The Euro on the Daily Chart has been in a downtrend since 25 May 2021 when it registered the high price at 1.22655, followed by a series of lower tops and lower bottoms.
On 17 June 2021, the Euro recorded the low price of 1.19831.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the Euro’s downward direction.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which points to the negative sentiment.
All three technical indicators are in agreement with regards to the downward bias of the Euro.
Trade Price Targets
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 1.20327 (161.8%).
- The second price target is seen at 1.19188 (261.8%).
- The third price target is projected at 1.17345 (423.6%).
While the first target has already been breached, the Euro is currently trading below the downtrend line.
Its current price is 0.9% below last week’s close, after a sharp decline in price during a period of heavy selling.
The presence of the Long Black Body hints at a potential rally to the downside. Of course, supply and demand as well as the crowd sentiment will determine the future course of Euro.
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