With the beginning of the week the EUR/USD pair marked
a fresh 4 month high, but meanwhile since then we witnessed huge plummeting and the current market price is 1.0680. The elevated mood on Monday was supported by the speculation
that the ECB was considering tapering its stimulus program along with the
largely weakened greenback. Today the pair printed 2 week low at 1.0668 which is clearly explained by the mild local
preliminary inflation data for March that frames the ECB's picture that the
latest advance was temporal.
Technically speaking, the pair is set in short term bearish mode, given that on the 4 hour chart the 20-day SMA has sharply turned to downside and is about to cross with the 100-day SMA. A recovery above the both SMAs seems to be very hard at this very moment.
Technically speaking, the pair is set in short term bearish mode, given that on the 4 hour chart the 20-day SMA has sharply turned to downside and is about to cross with the 100-day SMA. A recovery above the both SMAs seems to be very hard at this very moment.
Technical
indicators are showing extreme overbought conditions and are displaying lack of
momentum. RSI has slightly retreated to 30 level, while stochastic is staying
flat below 10 region.
In
line with the short term bearish outlook is standing the key support at 1.0660
and in case of breaking it, further weakness is seen at 1.0620.
As
Freddie sings „These are the days – it never rains but it pours”.