The
latest ECB’s decision on economic policy sent the EUR/USD pair back to the
camp of bears and very close to the yearly low marked on 4th of December at
1.0504. The pair is currently situated at 1.0560 mark and is finding difficulties
to move above 1.0600 area.
The 20-day EMA on the H4 chart is indicating strong bearish momentum. RSI is
close to 30 level and confirm the bearish trend. Stochastic is showing extreme
oversold conditions but still displaying lack of momentum.
By the end of the week the pair has gone under 38.2% (1.0808) and 23.6% (1.0690) Fibonacci retracement of October’s
high and December’s low, both key levels for the bears.
From technical viewpoint the sentiment remains in favor of the ongoing bearish
trend. But the next week will be very significant for the forex market as Fed’s
economy policy meeting will be held on Wednesday. What will be Yellen’s
decision and will the dollar’s rally be halted or will be seen in new highs,
will be known very soon.
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