ETH/USD is trading in the red on Friday after it faced strong resistance at 20-DMA. It is currently trading at 1006 levels at the time of writing (Kraken).

On the upside, resistance is seen at 1047 (1h 50-SMA) and a break above would target 1122 (20-DMA)/ 1174 (50% retracement of 1594.89 and 755). Further strength would see the pair testing 1200/1274/1300.

On the downside, support is seen at 961 (4h 200-SMA) and any violation would drag it to 946 (1w 7-SMA)/ 925 (61.8% retracement of 512 and 1594.89)/900. Further weakness would target 870 (50-DMA)/800.

Momentum studies: Bias appears bearish on the daily chart with MACD and stochs biased lower and RSI below 50.

On the weekly chart, RSI and stochs are rolling over from overbought levels, while MACD line is above the signal line. The pair sees strong support at 7-SMA (946 levels) and a break below will see further downside.

Recommendation: Good to short on break below 961. SL: 1130. TP: 946/925/870.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest