Wednesday, 27 September 2017

EUR/USD The bearish momentum remains strong


EUR/USD is extending its downward movement after breaking yesterday below the 1.18 handle. The  pair marked over a month low with current market price 1.1738 and is nearing the 1.17 area, as there are no major releases from the euro area and yet the US dollar is keeping its upward strength after Fed Chair Janet Yellen’s speech.   
From technical view point, the pair confirmed the bearish downfall. On the four hour time frame the price is moving well below its moving averages with 20-day SMA keeping strong bearish slope and the 100-day and 200-day are staying flat. Both RSI and stochastic are located within extreme oversold territory.
The pair reached daily low today at 1.1730 and despite the slight correction, the bearish momentum remains strong. From the current level, EUR/USD is meeting immediate support at 1.1720 and in case of breaking it, the pair will be poised to extend its decline towards 1.1700 – 1.1690.
All eyes now on the key release of US durable goods data later on today with expectation for better figures for August which respectively would
support the US dollar bulls. 

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