The post-Powell sentiment weight down the single
currency, which anyway suffered Tuesday after weak German inflation numbers. The
EUR/USD continues to fall today, breaking though the key support line at 1.2205
(the February low) and now is pressuring the 32.8% Fibonacci retracement of
latest October to February bullish run
at 1.2170.
On the four hour time frame the price is developing below its moving averages. Since yesterday the 20-day SMA has turned to downwards, while the 100-day and 200-day SMA had slowed around 1.23 and are providing dynamic resistance. RSI is acting quite undecided around its 30 level and stochastic is located within extreme negative territory with no sighs for recovery.
The hesitation of both indication can bring the pair hovering around the support area 1.2205 – 1.2170. But if bears have no reason to feel comfortable in this zone, may try to move to the south by testing the January’s low at 1.2164 which if broken will provide next target at 1.2100.
On the four hour time frame the price is developing below its moving averages. Since yesterday the 20-day SMA has turned to downwards, while the 100-day and 200-day SMA had slowed around 1.23 and are providing dynamic resistance. RSI is acting quite undecided around its 30 level and stochastic is located within extreme negative territory with no sighs for recovery.
The hesitation of both indication can bring the pair hovering around the support area 1.2205 – 1.2170. But if bears have no reason to feel comfortable in this zone, may try to move to the south by testing the January’s low at 1.2164 which if broken will provide next target at 1.2100.
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