The ECB monetary policy meeting and the following press
conference brought nothing new on the table except increased volatility. The
interest rate remains unchanged and no signs of any timetable for ending the
current bond buying program were given. The expected steps are postponed to June
and until then the single currency will be dragged by the stronger US dollar.
The EUR/USD pair fell today to its lowest level since January and marked
intraday low at 1.2195. As seen on the four hour time frame the price is
developing well below its bearish moving averages. RSI and stochastic and
located within negative territories but yet there is room for further decline.
The pair tested major support but succeeded to bounce and currently is trading
slightly above it at 1.2106. The 1.2100 level is considered as extremely
significant due to the fact that it represents highs from 2015 and 2017. On one
hand this could be good turning point with possible further move towards 1.2155
and then 1.2200. But on the other hand breaking below it would open doors for
steeper decline with initial target the psychological 1.2000 handle.
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