EUR/USD - is Still Trading Below 23.6% Fibo - 02/09/2017 (GMT)

The EUR/USD pair over yesterday’s session was consolidating within 1.0640 support level and 1.0715 resistance level. The single currency pair continues to be unable to take advantage of the weakness in the U.S. dollar for making any kind of significant progress. It has found a strong obstacle on the aforementioned resistance level which overlaps with the 100-SMA on the 4-hour chart and stuck beneath it.

Our expectation is a further decline until the 1.0620 – 1.0640 support zone which is near with the 200-SMA on the same chart and overlaps with the 38.2% Fibonacci retracement level from January 3rd to February 2nd. Otherwise, a break above the 1.0715 handle, the price will be exposed to the 1.0830 critical level. The stochastic oscillator created a bearish crossover within its moving averages, indicating sell positions. The RSI indicator is flattening in the negative territory, below 50 level.