Looking at one of the most miserable EUR/USD daily charts of the year, for the past 5 days the EUR/USD traded in between 1.3152, now becoming history, and 1.3220 unable to fill the weekly opening gap at 1.3240, despite the little effort such would required. There was plenty of fundamental data both sides of the Atlantic, with European one mostly down, and painting a gloom future, and US up, supporting a more steady growth in the USA, main reason why despite the restricted range, the pair is ending the week at fresh year lows, below mentioned 1.3152.
Anyway and despite the lack of emotions, the bearish trend is not only intact, but getting ready to extend towards 1.3000 critical figure, next line in the sand for the EUR/USD. The daily chart shows price extending to fresh lows after London close, with indicators heading strongly down into negative territory, and RSI in fact heading lower in oversold territory after a very limited upward correction. 20 SMA maintains a strong upward slope well above current price, while 100 SMA crossed 200 one in the 1.36 area, too far away to be significant, except for the fact that the shortest is below the larger one.
The immediate support stands in the 1.3090/1.3110 price zone, from where the pair can go straight towards 1.3000 over the next few sessions. Next week we have ECB and US Payrolls, so it won’t be much to think that if data continues to be dollar supportive, the pair may break below the key figure, and extend its decline towards 1.2930/50 area, where the pair presents several daily highs and lows.
An upward corrective movement can’t be ruled out, but it will be only above the 1.3240 price zone that the pair will be able to advance some. In that case, the 1.3330/50 area comes as probable bullish target. Approaches to the last will likely attract sellers rather than signal a stronger come back of the European currency, and will probably be the ultimate top for next week.
View Live Chart for EUR/USD
Anyway and despite the lack of emotions, the bearish trend is not only intact, but getting ready to extend towards 1.3000 critical figure, next line in the sand for the EUR/USD. The daily chart shows price extending to fresh lows after London close, with indicators heading strongly down into negative territory, and RSI in fact heading lower in oversold territory after a very limited upward correction. 20 SMA maintains a strong upward slope well above current price, while 100 SMA crossed 200 one in the 1.36 area, too far away to be significant, except for the fact that the shortest is below the larger one.
The immediate support stands in the 1.3090/1.3110 price zone, from where the pair can go straight towards 1.3000 over the next few sessions. Next week we have ECB and US Payrolls, so it won’t be much to think that if data continues to be dollar supportive, the pair may break below the key figure, and extend its decline towards 1.2930/50 area, where the pair presents several daily highs and lows.
An upward corrective movement can’t be ruled out, but it will be only above the 1.3240 price zone that the pair will be able to advance some. In that case, the 1.3330/50 area comes as probable bullish target. Approaches to the last will likely attract sellers rather than signal a stronger come back of the European currency, and will probably be the ultimate top for next week.
View Live Chart for EUR/USD
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