EURUSD rebounded from support of 1.127. We can see that the market is trading slightly bullish sideways as the price traded above the Fibonacci Extension of 200.0% at 1.130. ADX continued to indicate that the market strength is weakening as the market is uncertain between the prices of 1.150 and 1.130. As a reversal is formed on the support line, if the price does of the next candle does not close above 1.140, we can see the market to trade downwards. However if the price breaks the support of 1.130, we can see the price trading towards 1.100
Market price was seen resisted twice at 1.150 as it tried to break above the resistance. However it had failed in the previous 2 attempts. Stochastic showed that the market is currently oversold and ADX indicated that the market is weak on the uptrend. This illustrated that we may see a slight retrace towards the upside before the market continue to trade downwards. If the support of 1.130 is broken, we may see the price continue downwards.
Market price is slightly resisted at 1.133, however there is an increase in the market strength as indicated by the ADX. MACD indicated to all who still has their shorted positions to reassess their positions and the signal had started to creep upwards to the level 0. Reversal candles were seen forming along the 20 SMA, this showed that the SMA might be a more relevant indicator in this point in time. It too showed that the market is currently respecting the Fibonacci Extension of 200.0% at 1.130. If the SMA started to cross the 55 EMA at a favourable angle, we may see the price retracing higher.