EURUSD exits the channel – Analysis - 05-01-2017

The EURUSD pair achieved clear breach to the bearish channel's resistance that appears on chart, which stops the recently suggested bearish trend scenario and lead the price for recovery attempts on the intraday and short term basis, as the price gets positive support by the EMA50 now, but on the other hand, stochastic shows clear overbought signals now, which might push the price to return to the bearish channel again.

Therefore, we prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 1.0460 support and 1.0519 resistance, as breaking the mentioned support represents the key to return to the main bearish track that its next target located at 1.0326, while breaching the resistance will confirm extending the pair's gains to target 1.0640 initially.

Expected trading range for today is between 1.0400 support and 1.0640 resistance.

Expected trend for today: Depends on the above mentioned levels