Technical analysis of the currency pair EUR/USD on 14/02/2017. The daily chart
General analysis.
The January increase for the currency pair EUR / USD was completed and now we are back into the medium downtrend. From the beginning of February, the price dropped 250 points and is now trading at around 1.0635. The closest support level for the euro will be the support of 1.0550.
Earlier in early February the price of successful break below the moving average 14 and fixed below the line therefore determining the trend at the moment as the downward.
Chart of Stochastic indicator also indicates a decrease. Two signal lines are directed down and located in the overbought zone.
Considering the overall picture for the EUR / USD, we can confidently expect a further decline at least to the support 1.0550 and possibly even lower. The correct decision will be to open short positions down to support 1.0550 and after that make further analysis of the situation in case of breakdown or rebound from this level.
When you play the short you should pay attention to the volume level. If volumes will continue to grow with an approximation to the level of support level, then most likely we will see a breakdown and a further decline. But if the volume will decrease, the best solution is to take profit and open a new position after making new analysis.
