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EUR/USD downside playing out below 1hr 20 sma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/USD remains in a bearish trend since the supply above 1.1375.

    Last week, the dollar gained traction and fond demand on positive data from the US, despite Yellen's dovish rhetoric, even though she remained cautiously optimistic. EUR/UD has otherwise been performing strongly in a recovery from below the 1.10 handle and lows of 1.0809 this month.

    For the week ahead, we await the FOMC minutes and Draghi testifying before an EU Parliament committee. This event alone could accelerate the correction in the early Feb reversal and see bears taking back control on dovish rhetoric, while at the same time, Draghi may wish to curb the advance in the euro that we have been seeing of late in risk-off markets.

    EUR/USD levels

    Technically, "Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price broke below its 20 SMA, currently around 1.1295 and the immediate resistance, while the Momentum indicator bounced from its 100 level and the RSI consolidates around 50, also help keeping the downside limited."

    Meanwhile, spot has been trading below the pivot of 1.1268 and targets S1 at 1.1201 the guards space to S2 at 1.1148. The key objective for bears are closes below 1.1081 and R1 guarding the psychological 1.1000 level. RSI on the 4hr chart is neutral at 49.
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