EUR/USD: At major support, the tendency is to the downside

EUR/USD Monday's four-hour chart is showing the pair is just above critical support, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“The four-hour chart is showing that critical support awaits at 1.0870, which is the confluence of the 100 and 200 Simple Moving Averages, a swing high from early May and soon also the uptrend support line that has been accompanying the EUR/USD pair since mid-May.”

“Momentum is to the downside, and EUR/USD is trading just below the 50 SMA, so the tendency is to the downside.” 

“Below 1.0870, the next lines to watch are 1.0825 and 1.0780.”

“Resistance awaits at 1.0890, a peak from mid-May, followed by 1.0920 and 1.0950.”