With
the start of the new year the EUR/USD pair collided with the unexpected. The
pair marked a 14-year low at 1.0340, while at the end of the previous year rallied
to 1.0650.
The weekly chart is showing that the pair is placed well below the moving
averages. RSI is situated at around 36 level and is displaying slight signs of
upward movement. Stochastic is bouncing from the extreme oversold area, but
still has not crossed the 20 zone. The technical readings are suggesting a
corrective phase within the range from the last two years.
If case of conquering the 30th December’s high at 1.0650, the pair might fight 1.0704
(38.2% Fibonacci retracement of November 9th to January 3rd run down) and set correction movement. 1.0500
are is acting as strong support and if falling below it, next important level
is 1.0365. Anyway having in mind the freshly posted low, another are supposed
to be around the physiological level at 1.0300.
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