EUR/USD - EUR/USD Lost its Strong Bullish Momentum - 01/26/2017 (GMT)

For the past three trading days, euro has struggled within the consolidation area 1.0710 – 1.0770 versus the greenback and failed to extend its gains. The EUR/USD pair is trading sideways while it stuck below the 100-daiy SMA which seems to be a strong obstacle for the continuation of an upward potential move.

Going to the short-term timeframe, the common currency pair is still developing above the ascending trend line and if the price penetrates the trading range to the downside, below the 1.0710 support barrier, it would open the way for a test of the aforementioned line and the 1.0625 obstacle. On the other side, if the price surpasses the 1.0770 resistance handle, it will expose the pair towards the 1.0800 strong psychological level and then to 1.0850. Technical indicators do not give a clear signal as both are following a positive path but with weak momentum.