EUR/USD - Broke The Falling Line - Bearish - 02/16/2017 (GMT)

Euro traded higher against the greenback for the first time in five bearish trading days. During yesterday’s session, the EUR/USD pair began the day with a bearish momentum and plunged below the 1.0560 key level, however, after it hit the 1.0520 support barrier, recovered and soared above the descending trend line and the 1.0590 obstacle. The single currency pair is approaching the bearish crossover within the 50 and 200 SMAs, which indicates sell positions, and is slightly above the 1.0640 resistance handle. The latter obstacle is an attractive level to go short as we expect that the U.S. dollar will strengthen again.

On the other hand, if the price surpasses above the 1.0640 barrier, it would open the door for a further increase until the 1.0715 resistance level. On the 4-hour chart, the current momentum of the technical indicators remains bullish with weak move. The RSI indicator entered the positive territory but is flattening near its neutral zone. Also, the MACD oscillator is rising but is still following a negative path.