The common currency trades lower this Thursday, flirting with the 1.3750 strong static support against the greenback. European markets are trading lower amid comments from European Central Bank officials that revived speculation about further monetary easing to deal with the potential deflation the area suffers. But for the most, I believe they are trying to down talk the EUR and keep it away from the 1.40 level.
Later today the US will publish its final GDP reading, expected to surge up to 2.7%. If that’s the case, then the risk to the downside will increase as the market will have further prove US is doing better than the EU, and while one is retrieving facilities, the other is thinking on applying them. Moreover, the COT report from last week shows an excessive amount of longs in the pair, and profit taking, ahead of the month end is also in the table.
Technically, the 4 hours chart shows price breaking below key 1.3780 area, 38.2% retracement of its latest bullish run and 200 EMA, while indicators hold in negative territory, showing no actual bearish potential. A break below the weekly low of 1.3748 should trigger some stops and drive the pair lower towards 1.3710/20 price zone, while further slides below this last expose the 1.3640 price zone.
Failure to advance beyond 1.3810 yesterday US session, suggest only steady gains above this last will deny the possibility of a leg lower, with a possible recovery then, towards 1.3850/70 price zone.
View Live Chart for EUR/USD
Later today the US will publish its final GDP reading, expected to surge up to 2.7%. If that’s the case, then the risk to the downside will increase as the market will have further prove US is doing better than the EU, and while one is retrieving facilities, the other is thinking on applying them. Moreover, the COT report from last week shows an excessive amount of longs in the pair, and profit taking, ahead of the month end is also in the table.
Technically, the 4 hours chart shows price breaking below key 1.3780 area, 38.2% retracement of its latest bullish run and 200 EMA, while indicators hold in negative territory, showing no actual bearish potential. A break below the weekly low of 1.3748 should trigger some stops and drive the pair lower towards 1.3710/20 price zone, while further slides below this last expose the 1.3640 price zone.
Failure to advance beyond 1.3810 yesterday US session, suggest only steady gains above this last will deny the possibility of a leg lower, with a possible recovery then, towards 1.3850/70 price zone.
View Live Chart for EUR/USD
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