EUR/USD: Patience before further depreciation

The recent EUR/USD bullish run might have already run out of the steam. Haresh Menghani recommends being prudent and wait for some strong follow-through selling before positioning for any further near-term depreciating move.

Key quotes

“Weakness below the 1.1100-1.1095 region (200-DMA) might continue to attract some dip-buying and help limit the downside near 100-day SMA support, around the 1.1055 region. Sustained break through the mentioned support levels will confirm that the pair might have already topped out in the near-term.” 

“On the flip side, immediate resistance is pegged near the 1.1175 area – the top end of the said descending trend-channel. This is closely followed by the 1.1200 round-figure mark.”