The common currency found no relief this last week, but accelerated south after 3 weeks of limited ranges: the pair trades at fresh year lows, smashed by dollar strength, this last reinforced by Yellen’s speech on Jackson Hole this Friday. The wording was far from shocking, with the lady dovish as usual, but it took just the mention of the possibility of a sooner rate hike, to see the dollar resuming its advance. Furthermore, some woes in Russia and Ukraine boosted risk aversion, which only helped fueling the American currency.
In Europe there were no major developments over the last few days, but there will heaps next week, including EZ inflation next Friday. Technically, the daily chart shows a quite clear bearish stance, with lower lows and lower highs daily basis, and indicators heading lower below their midlines. RSI has attempted to correct higher from oversold levels but turned south again, with price nearing the 1.3200 figure as the week comes to an end. Moving back to last year, the weekly chart shows several highs and lows in the 1.3160 area, turning it into a key support, as a break below the level exposes the 1.3000 psychological level.
Despite the distance, the resistance to watch over the next few days will be 1.3330 price zone, as it will be only above the level the bearish pressure will ease: movements up to the level should be understood as corrective and mere selling opportunities. If somehow the pair reverses and advances above this last, 1.3440 area is the possible bullish target then.
View Live Chart for EUR/USD
In Europe there were no major developments over the last few days, but there will heaps next week, including EZ inflation next Friday. Technically, the daily chart shows a quite clear bearish stance, with lower lows and lower highs daily basis, and indicators heading lower below their midlines. RSI has attempted to correct higher from oversold levels but turned south again, with price nearing the 1.3200 figure as the week comes to an end. Moving back to last year, the weekly chart shows several highs and lows in the 1.3160 area, turning it into a key support, as a break below the level exposes the 1.3000 psychological level.
Despite the distance, the resistance to watch over the next few days will be 1.3330 price zone, as it will be only above the level the bearish pressure will ease: movements up to the level should be understood as corrective and mere selling opportunities. If somehow the pair reverses and advances above this last, 1.3440 area is the possible bullish target then.
View Live Chart for EUR/USD
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