Following a quiet consolidation during Asian hours, the EUR/USD pair extended its decline early Europe to a daily low of 1.2277, from where it bounced up to a session high of 1.2337. Nevertheless, the pair eased back, struggling to hold above the 1.2300 figure despite German IFO Survey showed an improvement in Business Climate and Economic Expectations.
The strong slide triggered by the Federal Reserve’s latest decision has left 4 hours indicators in oversold territory, but there are no signs market will reverse course, as RSI continues to head south despite at 28. Market is more about sentiment than technical analysis today which means the risk remains to the downside, particularly if stocks maintain the positive tone. Immediate support stands at 1.2270 followed by the year low of 1.2240. If this last gives up, the 1.2200 figure comes next. To the upside, sellers will likely surge between 1.2330 and 1.2360, with a clear advance beyond this last to revert current bearish tone, at least in the short term.
View Live Chart for EUR/USD
The strong slide triggered by the Federal Reserve’s latest decision has left 4 hours indicators in oversold territory, but there are no signs market will reverse course, as RSI continues to head south despite at 28. Market is more about sentiment than technical analysis today which means the risk remains to the downside, particularly if stocks maintain the positive tone. Immediate support stands at 1.2270 followed by the year low of 1.2240. If this last gives up, the 1.2200 figure comes next. To the upside, sellers will likely surge between 1.2330 and 1.2360, with a clear advance beyond this last to revert current bearish tone, at least in the short term.
View Live Chart for EUR/USD
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