EUR/USD Technical Analysis & Daily Chart

General Analysis The January increase for the EUR/USD currency pair was completed and now we are back into a medium downtrend. Since the beginning of February the price has dropped by 250 points and is now trading at around 1.0635. The closest support level for the euro will be the support at 1.0550. Earlier in February the price saw a successful break below the moving average 14 and fixed below the line, thereby determining the trend at the moment as a downward one. The chart of the Stochastic indicator also indicates a decrease. The 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 a further analysis of the situation in case of a breakdown or a rebound from this level. When you go short you should pay attention to the volume level. If volumes continue to grow with an approximation to the support level, then we would most likely see a breakdown and a further decline. But if the volume decreases, the best solution is to take profit and open a new position after conducting a new analysis.