EURUSD begins with strong negativity – Analysis - 05-12-2016

The EURUSD pair opened this week with sharp decline to test the key support 1.0519 without managing to break it until now, which urges caution from the upcoming trading, as this level represents one of the next trend keys besides 1.0685 resistance, thus, breaking it will push the price to suffer more losses on the short term and medium term basis, to head towards 1.0326 as a next main station.

The EMA50 pushing negatively on the price to support the chances of breaking the above mentioned support, on the other hand, stochastic reaches the thresholds of the oversold areas in attempt to protect the price from achieving more decline.

Therefore, we will continue with our neutrality until we get clearer confirmation signal for the next trend, noting that breaching 1.0685 will open the way to recover on the short term basis and target areas that start at 1.0778 and extend to 1.0938.

Expected trading range for today is between 1.0420 support and 1.0685 resistance.

Expected trend for today: Depends on the above mentioned levels