The
initial reaction on Mario Draghi’s speech today pushed the EUR/USD pair towards
1.0933, which was influenced by the growing
enthusiasm about the state of the euro-area economy.Ahead
of the Wall street opening the pair dropped from the above mentioned high to 1.0850
and the current market price is 1.0879. Probably the freshly released US macro
data on jobless claims and trade deficit, showing worse than expected numbers,
saved the pair from further decline.
The four-hour time frame is showing that technical indicators are entering
negative territory. RSI is located at mid-lines, but has slightly turning to north, while stochastic
has moved sharply to oversold area with current location at 25. Meanwhile the pair
crossed to below the 20-day SMA for first time this week.
In case of moving below today’s low at 1.0850, next support is seen at 1.0820
(Monday’s low). Looking to the upside, recovery of the bullish trend will be possible
only above 1.0920 (Monday’s opening gap) with further development towards
1.0950.
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