Thursday, 26 July 2018

EUR/USD Downside pressure is increasing after dovish ECB


The EUR/USD pair turned sharply to the downside, retracing from closer to weekly highs and weakened further below the 1.1700 mark after the latest ECB monetary policy update with  Draghi reaffirming to hold interest rates steady through the summer of 2019.
Technically speaking the short-term outlook remains bearish. On the four hour time frame the price is developing below its flat moving averages. RSI is located slightly below its mid-line and has lost directional strength. Stochastic is showing strong bearish momentum and is nearing negative territory.
Currently the pair is trading at 1.1656, but the huge selling pressure might drag the pair towards the 1.1600 handle, which if broken to below will open doors for testing next support lines at 1.1575 and 1.1535.  Looking to the upside, 1.1700 remains a resistance hard to achieve, but in case of any bullish attempts next target is provided by 1.1725 and 1.1745.



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