The American dollar staged a strong comeback this week, particularly against a weaker EUR, erasing most of the last 3-week gains of the common currency. In fact, the pair aims to close the week well below the 61.8% retracement of these latest weeks advance at 1.0688, a critical resistance level for the upcoming days.
The third time was not a charm in this case, as the pair faltered in the 1.1000/1.1050 area, before resuming its slide. The weekly chart shows that the technical indicators turned back south after correcting extreme oversold readings, whilst the moving averages remain way far above the current levels to be taken into account, albeit the 20 SMA maintains a sharp bearish tone. In the daily chart, the 20 SMA stands around the 38.2% retracement of the mentioned decline around 1.0830, whilst the technical indicators maintain a bearish tone below their mid-lines, all of which supports additional declines.
As long as the 1.0690 area contains the upside, the pair should be expected to maintain the bearish strength, with a break below 1.0550, exposing the pair to a retest of 1.0461, this year low. If the level gives up, the next bearish target comes at 1.0320, albeit market players will be eyeing parity as the next probable target.
Above 1.0700, on the other hand can favor additional gains up to the 1.0830 area, with this last expected to contain the upside next week.
View Live Chart for EUR/USD
The third time was not a charm in this case, as the pair faltered in the 1.1000/1.1050 area, before resuming its slide. The weekly chart shows that the technical indicators turned back south after correcting extreme oversold readings, whilst the moving averages remain way far above the current levels to be taken into account, albeit the 20 SMA maintains a sharp bearish tone. In the daily chart, the 20 SMA stands around the 38.2% retracement of the mentioned decline around 1.0830, whilst the technical indicators maintain a bearish tone below their mid-lines, all of which supports additional declines.
As long as the 1.0690 area contains the upside, the pair should be expected to maintain the bearish strength, with a break below 1.0550, exposing the pair to a retest of 1.0461, this year low. If the level gives up, the next bearish target comes at 1.0320, albeit market players will be eyeing parity as the next probable target.
Above 1.0700, on the other hand can favor additional gains up to the 1.0830 area, with this last expected to contain the upside next week.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.