1. Hello Guest Click here to check FX Binary Point Financial Directory

EUR/USD bulls losing commitments, moving south

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/USD is testing the 50 SMA on the hourly chart at 1.1235 in early Asia after pressures came in with the 20 SMA at 1.1249 capping further bids attempting the London high of 1.1273.

    EUR/USD was offered from 1.1280 yesterday and followed through in European markets in supply while markets anticipate dovish sentiment from the ECB this week. "EUR underperformed across the board, on speculation the ECB's Monetary Policy meeting accounts will offer hints of further easing coming from the Central Bank, before the year end," explained chief analyst at FXStreet, Valeria Bednarik.

    However, as volatile as markets are, the euro was making a comeback as London got a hold of the baton and reached aforementioned highs before the price slid into the grip of the bears who ran towards the 200 SMA on the hourly chart before bids were found and a commitment from the bulls emerged once again to 1.1265, the US session high.

    EUR/USD neutral/bearish near term (RSI (14) 43, sold to below pivot 1.1241)

    Technically, from here, we are in neutral territory and need a break and closes on top of the cloud top at 1.1313 targeting early/mid Sep highs before a look in at R3 1.1420. To the downside, the 200 DMA is at 1.1148 today but price is supported with the golden cross at 1.1168.

    "Below here, Karen Jones, chief analyst at Commerbank explained, "The risk remains for a re-visit of the current September lows at 1.1105/1.1088. Failure at 1.1088 would trigger a move to 2015 uptrend at 1.0971.This remains a key break down point. Currently the market is just sideined."
    For more information, read our latest forex news.

Share This Page