EUR/USD sits above 5-DMA in Asia, Death Cross on monthly

The EUR/USD pair sits comfortably above the 5-DMA level in Asia for the first time in seven days. Trading volumes continue to drop ahead of the Christmas holidays.

Death Cross

The ‘Death Cross’ is one of the major trading indicator of a bear market. It represents the bearish crossover between the 50-MA and 200-MA.

The EUR/USD monthly chart shows a bearish crossover between the 50-MA and 200-MA. It remain to be seen if the ‘Death Cross’ marks the beginning of a journey to parity levels. Moreover, it is often argued that the much hyped bearish crossover is often a lagging indicator.

EUR/USD Technical Levels

A break below 1.04 (zero figure) would open the door to 1.0363 (38.2% Fib ext of May 2014 high - Mar 2015 low - Aug 2015 high) and then to 1.03 levels. On the other hand, a breach of resistance at 1.0451 (previous day’s high) could yield a re-test of 1.05 (zero figure) and 1.0518 (Nov 24 low).