Technical analysis for EUR/USD for February 5, 2019

EUR/USD made no progress yesterday as price moved in a narrow trading range holding above 1.14 support and below 1.15 resistance. Short-term support is being challenged at 1.1430 and this might be a sign of weakness implying a move towards 1.1360 is possible over the coming sessions.

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Green rectangles - topping pattern with overbought RSI

Blue rectangles - short-term support areas

Red line -resistance trend line

Black lines -potential break down move

Short-term support is being challenged early in today's session. A 4-hour close below 1.1430-1.1420 area would push prices to the next support level at 1.14. The chances of breaking below 1.14 will be higher if we see 1.1430-1.1420 broken. This would lead to a deeper pullback at least towards the 61.8% Fibonacci retracement at 1.1375 with 1.1355 the most probable target. Support at the 78.6% Fibonacci level is crucial. Breaking below it will increase dramatically the chances of moving below 1.1280.

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