- The pair charted a doji yesterday. A break below 1.1370 would signal a continuation of the sell-off.
- The EUR/USD pair is currently trading at 1.1393, having hit a two-week low of 1.1370 yesterday.
- The common currency has retraced 50 percent of the rally from the Nov. 12 low of 1.1215 to Jan. 10 high of 1.1570.
Indeed, the pair created a doji candle yesterday, which represents indecision in the market place. However, do not rule out the bears just yet, as the slowdown in the Eurozone economy could force the European Central Bank (ECB) to delay rate hikes.
Notably, economists polled by Reuters expect the ECB to hike rates in the four quarter as opposed to the previous forecast of a third-quarter rate hike. The central bank is seen raising its deposit rate, currently at -0.40 percent, to -0.20 percent in the fourth quarter and would wait until early 2020 to raise its refinancing rate from zero to 0.20 percent.
The rising odds of the ECB rate hike delay could keep the EUR under pressure.
As a result, EUR/USD is more likely to invalidate bearish exhaustion signaled by yesterday's doji with a move below 1.1370. The bearish pressure would weaken if the pair closes above the 10-day EMA, currently at 1.1420.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1396
Today Daily change: 4 pips
Today Daily change %: 0.0439%
Today Daily Open: 1.1391
Trends:
Daily SMA20: 1.1429
Daily SMA50: 1.1385
Daily SMA100: 1.1465
Daily SMA200: 1.1609
Levels:
Previous Daily High: 1.1406
Previous Daily Low: 1.137
Previous Weekly High: 1.1571
Previous Weekly Low: 1.1396
Previous Monthly High: 1.1486
Previous Monthly Low: 1.1269
Daily Fibonacci 38.2%: 1.1384
Daily Fibonacci 61.8%: 1.1393
Daily Pivot Point S1: 1.1372
Daily Pivot Point S2: 1.1353
Daily Pivot Point S3: 1.1336
Daily Pivot Point R1: 1.1409
Daily Pivot Point R2: 1.1426
Daily Pivot Point R3: 1.1445
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