Bearish Engulfing on Eurusd Drags to Further Slumps

Technical insights: EURUSD:On a weekly chart the pair formed a bearish engulfing pattern candle with tall real body engulfs completely the previously formed two and half weeks bullish momentum which signifies the downside risks to this pair.Stochastic confirming the overbought situation as %D line crossover occurred near 80 levels on the same which is bearish sign again.RSI (14) began showing downward convergence to the price line adds more pressure to the slumps.But on daily chart the same pair trending at a crucial support around 1.0906 levels. If it manages to breach this crucial support then we could certainly see the pair testing below target levels with strict stop loss as well.T1: 1.08510T2: 1.0565SL: 1.0976

The material has been provided by InstaForex Company – www.instaforex.com

Tags: