EURUSD around the moving average – Analysis - 21-08-2017

The EURUSD pair hovers around the EMA50, and the price still inside the minor bearish channel that appears on chart, which might form bullish flag pattern in case breaching its resistance at 1.1795, which will assist to push the price to resume the main bullish trend that stopped recently for some bearish correction.

On the other hand, stochastic shows negative signals that might push the price to break 23.6% Fibonacci level at 1.1724 followed by pushing the price to extend the bearish correction on the short term basis, especially that the EMA50 forms resistance barrier against the price positive attempts.

Therefore, this contradiction between the technical factors make us continue with our neutrality until the price manages to breach one of the above mentioned levels followed by detecting the next destination clearly, noting that breaching 1.1795 will lead the price to achieve positive targets that start at 1.1911 and extend to 1.2040, while breaking 1.1724 will push the price to test 1.1608 direct before any new attempt to rise.

Expected trading range for today is between 1.1608 support and 1.1911 resistance.

Expected trend for today: Depends on the above mentioned levels