Technical analysis on EUR/USD for July 4, 2018

The EUR/USD pair has been moving mainly sideways for the last few sessions between 1.17 and 1.16. Medium-term trend remains bearish. As we said in the previous analysis, trend is bearish as long as we trade below 1.1720 and we should look to sell rallies.

Red line -medium-term resistance

Blue line - support

Magenta line - RSI support and divergence

The EUR/USD pair is challenging the medium-term resistance trend line that comes down from 1.24. A multiple bottom formation has been formed above 1.15 and a break below it will open the way for a move towards 1.14 as many stops will be placed there. On the other hand, a break above 1.1720 will open the way for a move higher towards 1.20-1.21. Until Friday, I do not expect much to change. The NFP numbers which are due on Friday will drive the market and provide some more volatility.