The EUR/USD’ traders took the week off: the pair is about to close it pretty much where it opened at 1.2472, with the range of these last 5 days having been of measly 110 pips. Friday data was for the most dollar positive, yet some profit taking ahead of London close erased greenback’s early intraday gains. Nevertheless, and despite many screaming “bottom”, bigger time frames maintain the bearish stance, and the fundamental scenario also says so: depressed inflation in Europe, weak GDP readings all through the area, and US Michigan Consumer confidence soaring to a 7-year high, proved so.
Technically, the weekly chart shows 20 SMA has extended its decline through larger ones, momentum maintaining its bearish slope and RSI still below 30, with sellers surging on advances towards the 1.2500 price zone.
Daily basis, 20 SMA offers dynamic resistance well above current price in the 1.2550 price zone, whilst indicators had erased oversold conditions but remain well into negative territory, and showing no aims to advance further. For the upcoming days, the year low of 1.2357 will be the critical support to follow, as it will take a break below to see the pair resuming the side, down to 1.2280/90 price zone, where the pair presents several weekly historical lows. If this last gives up, an approach to 1.2100 seems likely, opening also doors for a test of the long term key psychological level of 1.2000 in a longer term view.
Above afore mentioned 1.2550 the pair may correct higher, but the line in the sand remains at 1.2660, next resistance and probable top in case of a weekly recovery. In the unlikely case the pair manages to break above it, next target comes at 1.2750/70 price zone, albeit chances of such advance seem extremely poor at this point.
View Live Chart for EUR/USD
Technically, the weekly chart shows 20 SMA has extended its decline through larger ones, momentum maintaining its bearish slope and RSI still below 30, with sellers surging on advances towards the 1.2500 price zone.
Daily basis, 20 SMA offers dynamic resistance well above current price in the 1.2550 price zone, whilst indicators had erased oversold conditions but remain well into negative territory, and showing no aims to advance further. For the upcoming days, the year low of 1.2357 will be the critical support to follow, as it will take a break below to see the pair resuming the side, down to 1.2280/90 price zone, where the pair presents several weekly historical lows. If this last gives up, an approach to 1.2100 seems likely, opening also doors for a test of the long term key psychological level of 1.2000 in a longer term view.
Above afore mentioned 1.2550 the pair may correct higher, but the line in the sand remains at 1.2660, next resistance and probable top in case of a weekly recovery. In the unlikely case the pair manages to break above it, next target comes at 1.2750/70 price zone, albeit chances of such advance seem extremely poor at this point.
View Live Chart for EUR/USD
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