Tuesday, 9 January 2018

EUR/USD Bears are aiming 1.1875

EUR/USD dropped today and marked a two week low at 1.1915, a level that has not been visited since late December and down with 0.30% for the day.
The greenback’s rally is shuffling now. The strength given by Fed's speakers yesterday do not weight today as softer than expected macro data put an halt on US dollar’s demand.
EUR/USD was pressured by the initial support provided by th 50% Fibonacci retracement of last week’s bullish run at 1.1903. As seen on the four hour time frame the pair bounced of this support and is currently trading at 1.1933. However on the same chart the 20-day SMA has turned sharply to south and the price is developing well below it. RSI and stochastic are located within extreme oversold territories and both have lost directional strength.  
Additional declines are expected toward the 61.8% retracement of same rally (1.1875) in case the pair returns back to 50% Fibo, coinciding with the 100-day SMA .


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