Tuesday, 17 January 2017

The seductive devouring fundamentals that thrilled the EUR/USD pair


In the early European session the EUR/USD pair reached a fresh high at 1.0720,later on returned to 1.0675/70 area and currently is placed around 1.07 handle. The US dollar was set under huge pressure and the pair was boosted by the sell-offs of the greenback.
The German ZEW survey delivered mixed sentiment and passed quite unnoticed. The US manufacturing index is out of the expectations and brought another downside pressure on the US dollar. But nevertheless, the star of the day was the UK PM’s speech, who shined with another set of devoted measures towards the Parliament vote.
Technically speaking, the EUR/USD pair is seen uplifted today. Nevertheless a push beyond 1.0706 (38.2% Fibonacci retracement of latest November to January slide) seems to be an extremely hard task, although the pair keeps the intraday bias above 1.0650,which is a an immediate support.
As seen on the H4 chart, the pair is  moving above the moving averages. Technical indicators are located within strong overbought market. RSI nears 70 level, but is showing lack of strength. Stochastic is placed at extreme levels and is indicating lack of momentum. 
While beingwithin  positive territory both indicators do not confirm any further slides to above. 
Important levels to consider for now are 1.0650 (intermediate support) and 1.0610. Looking upwards we must pay attention to resistances located at 1.0710 and 1.0750.





No comments:

Post a Comment