Wednesday, 23 November 2016

EUR/USD Poised To Extend Slide

Yet another set of selling pressure fell upon the EUR/USD pair today. The US dollar is getting stronger, the pair is marking its lowest level for the last almost 12 months and is currently trading at 1.0556.
The US marco data released today posted positive numbers, much better than expected. The FOMC minutes from today’s meeting are confirming the market attitudes for the upcoming rates hike. Given above the US dollar’s elevation seems to be reasonable.
During the afternoon trading the pair posted intraday low at 1.0523 even though shortly afterwards managed to recover slightly.
Technical readings are showing oversold market. RSI is placed at 30% area, while stochastic is displaying strong bearish momentum. 
Currently the EUR/USD pair is exposed to further downward slope, having in mind that is placed below 1.0600 area and also below the moving averages. 
Immediate resistance is seen at 1.0605, where now is lying the 20-day SMA. Support is located at 1.0525 and lower at 1.0500. 


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