Bears
took back the control on EUR/USD and the pair is seen today at lowest levels for this month.
The hawkish stance on the monetary policy released by Fed yesterday supported the US dollar, while the single currency is suffering double with the worse than expected numbers on the EU trade balance for April.
Ahead of the Wall Street opening the pair continues to decline and the current market price is 1.1153.
On the four-hour time frame the price has crossed to below the 20-day and 100-day SMAs with both starting to turn south.
RSI and stochastic are located within extreme oversold area and are showing strong bearish momentum.
The pair is heading to 1.1120/30 region, where the 200-day SMA ia acting as a dynamic support. Next support is seen at late May’s low (1.1075).
It's not sure when the bulls would reverse the pair to higher levels, but at least we may witness next week a bounce back to the range. For now the short-term outlook remains bearish.
The hawkish stance on the monetary policy released by Fed yesterday supported the US dollar, while the single currency is suffering double with the worse than expected numbers on the EU trade balance for April.
Ahead of the Wall Street opening the pair continues to decline and the current market price is 1.1153.
On the four-hour time frame the price has crossed to below the 20-day and 100-day SMAs with both starting to turn south.
RSI and stochastic are located within extreme oversold area and are showing strong bearish momentum.
The pair is heading to 1.1120/30 region, where the 200-day SMA ia acting as a dynamic support. Next support is seen at late May’s low (1.1075).
It's not sure when the bulls would reverse the pair to higher levels, but at least we may witness next week a bounce back to the range. For now the short-term outlook remains bearish.
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