EUR/USD EMAs Show Expanding Momentum on Daily
Our preference: short positions below 1.0999 with targets at 1.0941 & 1.0975 in extension.Alternative scenario: above 1.0999 look for further upside with 1.1064 & 1.1092 as targets.
The below is the daily chart of EURUSD. The currency pair’s EMAs are in a bearish stack (aqua ellipse). I.e. the green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA.
Moreover, the EMAs are starting to angle and separate. This is a characteristic of expanding momentum. Simarlarly, we note that the RSI is on the bearish side of 50 (blue rectangle). As long as the chart indicators maintain these positions the likely trajectory for the currency is down.