For a second week in a row, the EUR/USD pair refused to hold its gains above the 38.2% retracement of the 1.1533/1.0461 decline posted between February and March, at 1.0865, despite setting a fresh 3-week highs around 1.1050. The movement therefore, remains as corrective, as it would take a break above 1.1120, the 61.8% retracement of the same rally, to confirm additional midterm gains.
The pair seems to have lost part of its upward strength this past week, ending it barely 50 pips above the opening. The strong rejections on spikes above 1.1000 suggest that selling interest is just waiting for a better entry, rather than capitulate. Besides, the weekly chart shows long upper wicks in the last two candles, reinforcing the idea. Technically and in the same chart, the RSI has turned flat in oversold territory, still below 30, whilst the Momentum indicator managed to stage a tepid recovery from oversold territory, but remains well into the red. The 20 SMA maintains a strong bearish slope, but too far away to be relevant at this point.
In the daily chart, the price holds above a bearish 20 SMA, currently around 1.0760, whilst the Momentum indicator heads strongly higher in positive territory, but the RSI indicator already capitulated and turned lower at 48. Considering the day will likely end into the red, the Momentum indicator will likely turn lower before next candle opening. Anyway, the immediate resistance stands around the 1.0950 level, where the pair stalled several times intraday these last weeks, with a break above it favoring a continuation up to the mentioned highs around 1.1050, in route to the critical 1.1120 level. It would take a weekly close above it to confirm EUR bulls are here to stay.
To the downside, the mentioned 1.0760 is the first level to watch, with additional declines below it exposing the 1.0600 area for next week, whist if this last level gives up, the dollar will be positioned to retest its year high around 1.0460.
View Live Chart for EUR/USD
The pair seems to have lost part of its upward strength this past week, ending it barely 50 pips above the opening. The strong rejections on spikes above 1.1000 suggest that selling interest is just waiting for a better entry, rather than capitulate. Besides, the weekly chart shows long upper wicks in the last two candles, reinforcing the idea. Technically and in the same chart, the RSI has turned flat in oversold territory, still below 30, whilst the Momentum indicator managed to stage a tepid recovery from oversold territory, but remains well into the red. The 20 SMA maintains a strong bearish slope, but too far away to be relevant at this point.
In the daily chart, the price holds above a bearish 20 SMA, currently around 1.0760, whilst the Momentum indicator heads strongly higher in positive territory, but the RSI indicator already capitulated and turned lower at 48. Considering the day will likely end into the red, the Momentum indicator will likely turn lower before next candle opening. Anyway, the immediate resistance stands around the 1.0950 level, where the pair stalled several times intraday these last weeks, with a break above it favoring a continuation up to the mentioned highs around 1.1050, in route to the critical 1.1120 level. It would take a weekly close above it to confirm EUR bulls are here to stay.
To the downside, the mentioned 1.0760 is the first level to watch, with additional declines below it exposing the 1.0600 area for next week, whist if this last level gives up, the dollar will be positioned to retest its year high around 1.0460.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range above $2,300
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.