Wednesday, 19 April 2017

EUR/USD Getting ready to retest the resistance at 1.0740

EUR/USD marked a modest pullback today and reached lowest level at 1.06969. Given the fact that the US Dollar Index moved below 100.00 and the greenback trimmed some of its recent losses, and meanwhile the Euro area posted inflation data as expected, fundamentally the pair’s move sounds reasonable. 
Technically speaking, the short-term bias continues to point to the upside. The single currency failed to break the 1.0740 handle, before correcting lower. A possible break higher would fuel the bulls. 
The four-hour time frame is showing bullish 20-day SMA. RSI and Stochastic are located within overbought area, but had lost directional strength. The picture now is saying that consolidation could continue. A possible break below 1.0700 would lead to further decline towards 1.0670. Below this level the single currency is going to lose momentum significantly. Looking to above, in case bulls succeed to conquer the 1.0740 zone, next target i seen at 1.0780. 





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