Wednesday, 8 February 2017

EUR/USD Couldn't Hold Above 1.0700

During the early European session EUR/USD marked an intraday low at 1.0640, which is the lowest level for February. Shortly afterwards the bulls found enough stregth for recovery and pushed the pair to the daily high at 1.0713, where the the 20-day and 100-day SMAs have met.  
The upward potential is now limited by the 1.0720 region, because as clearly it is seen on the H4 chart this exactly where the 20-day SMA is crossing to downwards the 100-day SMA. Technical indicators have recovered from oversold area, but yet are below the mid-lines. RSI is showing lack of momentum and Stochastic is displaying bullish momentum. 
Given that the bulls will need more powerful incentive to confirm their strength. Intermediate resistance is seen at 1.0750 and next at 1.0800. The current market price is 1.0688 and if failing to hold around this area, the pair is poised to reinforce the downward slope towards 1.0650 and even lower towards the key support at 1.0590.


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