EUR/USD rejected at 5-DMA, trades below 4-hr 200-MA

The EUR/USD failed to hold above 5-DMA level of 1.0562 and shed a few pips to trade below the 4-hour 200-MA levels of 1.0551 in the dull Asian session.

Double top on intraday charts

Pair’s retreat from the Tuesday’s high of 1.0627 has put in place a double top formation with the neckline support at 1.0511.

The focus today is on what Trump says, especially about China, during his speech later today. The data docket is light, which means the lackluster trading is likely to continue ahead of Trump speech.

EUR/USD Technical Levels

On the daily chart, the descending trend line coming from Dec 8 high and Dec 30 high remains valid, courtesy of the pair’s failure at 1.0627 followed by a daily close at 1.0553 on Tuesday.

A break above 1.0553 (trend line hurdle today) would open the doors to 1.06 (zero figure) and 1.0627 (previous day’s high). On the other hand, a breakdown of support at 1.0511 (10-DMA) would shift risk in favor of a drop to 1.0423 (Dec 22 low) and 1.04 (zero figure).