Michael_Macdonald-XATSUK

EUR/USD pressuring supports. Seen lower in the coming weeks

FX:EURUSD   Euro / U.S. Dollar
EUR/USD is balanced in choppy trade above the 1.0538 low of December 2015, as short-term studies turn mixed.

Fresh losses are looked for in the coming weeks, however, as momentum studies and the Tension Indicator, (not shown), continue to weaken, with a break below critical multi-year support at the 1.0456 low of March 2015 opening up the 1.0330 year low of January 2003. Further slippage towards parity cannot be ruled out, as background monthly studies also extend lower.

A close above the 1.0710 break level from January is needed to stabilise price action and turn investors neutral. However, any immediate gains are expected to find difficulty reaching here, as sentiment remains negative and investors maintain a sell-into-strength strategy.