Selloff triggered stops in the EUR/USD, with market players now pricing in more action coming from the ECB on Thursday. But will this be enough to force Mario Draghi into full QE mode, or will the ECB head bring a wait and see stance? One way or the other, bears are in control, and despite the pair is due to an upward correction, there’s a long way up before a reversal can be called.
Technically, the 4 hours chart maintains the bearish tone, with price capped below a bearish 20 SMA now around 1.2680 daily high, with indicators heading strongly south in negative territory and RSI entering oversold territory. Some consolidation around current levels can be expected, before next move, with a downward acceleration through 1.2590 exposing the 1.2550 price zone in the short term. Immediate resistance stands at former lows around 1.2660, and pullbacks back to the level may be seen as selling opportunities; only above mentioned 1.2680 the bearish pressure may ease on the day, with a probable recovery then extending up to 1.2720/40 price zone.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.