EUR/USD capped by 50 and 100 SMA, support awaits at 1.1805

The EUR/USD pair is trading around 1.1815, up 0.2% on a day but Tuesday's 4-hour chart is showing the pair is capped by two significant moving averages. Yohay Elam, an analyst at FXStreet, notes that initial support is seen at 1.1805.

Key quotes

“EUR/USD is capped below the 50 and 100 Simple Moving Averages after failing to rise above them. While momentum is waning, it remains to the downside. All in all, bears are in the lead.”

“Some support awaits at 1.1805, a cushion from last week. The next line is 1.1750, a support line from Friday, followed by 1.17, a double bottom from earlier in the month which is about to converge with the 200 SMA.” 

“Resistance is at 1.1850, the weekly high, and also where the 50 SMA hits the price. Further above, 1.1915 was the initial peak in August, and it is followed by 1.1965, last week's high point.”