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14 Apr 2015
EUR/USD bears need to take out 1.0600
FXStreet (Guatemala) - EUR/USD is currently trading at 1.0648 with a high of 1.0707 and a low of 1.0531.
EUR/USD has been creeping lower stick by stick within a bearish drift and heavy after the knee jerk rallies on the back of a market that has been shunning the dollar, giving the euro an overdue boost after a number of consecutive sessions to the downside and without taking a breath of relief for some time. The US data was poor and coupled with a downgrading from the IMF in respect to the economic outlook in the US, that adds to the possibility of a longer spell of no action from the Fed in to the market's mind.
Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, it shows that the technical indicators are easing from overbought levels, but noted that the price recovered above its 100 SMA, currently around 1.0645. "In the same chart, the 20 SMA presents a strong bullish slope around 1.0600, limiting chances of a stronger slide. In the 4 hours chart, is clear that the pair was unable to establish above the 61.8% retracement of its latest bullish run, whilst the technical indicators turned lower above their mid-lines."
Finally, Valeria added, "The pair needs to resume its slide below the 1.0600 figure to retake the bearish bias, whilst steady gains above 1.0720 should favor additional intraday advances for this Wednesday."
EUR/USD has been creeping lower stick by stick within a bearish drift and heavy after the knee jerk rallies on the back of a market that has been shunning the dollar, giving the euro an overdue boost after a number of consecutive sessions to the downside and without taking a breath of relief for some time. The US data was poor and coupled with a downgrading from the IMF in respect to the economic outlook in the US, that adds to the possibility of a longer spell of no action from the Fed in to the market's mind.
Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, it shows that the technical indicators are easing from overbought levels, but noted that the price recovered above its 100 SMA, currently around 1.0645. "In the same chart, the 20 SMA presents a strong bullish slope around 1.0600, limiting chances of a stronger slide. In the 4 hours chart, is clear that the pair was unable to establish above the 61.8% retracement of its latest bullish run, whilst the technical indicators turned lower above their mid-lines."
Finally, Valeria added, "The pair needs to resume its slide below the 1.0600 figure to retake the bearish bias, whilst steady gains above 1.0720 should favor additional intraday advances for this Wednesday."