The EUR/USD pair remains stuck around the 1.2440 level that caps the upside after the pair tested the year low early Monday. The EUR is clearly in a bearish market, yet the record amount of short is the main reason why the pair is also is susceptible to squeezes higher once critical levels are reached. Nevertheless, latest bounce so far has been contained by the 38.2% retracement of last Fridays’ slide triggered by ECB’s President, Mario Draghi, once further easing was again suggested to boost inflation in the EZ.
The pair holds to its latest gains after German GDP readings, confirming an earlier flash estimate of a 0.1% rise in seasonally-adjusted GDP in the third quarter due to a sharp rise in private consumption and a climb in exports. Later today it will be the turn of the US to release the second review of its GDP figures, expected at 3.3% from the advance reading of 3.5%: a better than expected number may help the greenback recover ground, whilst a worse than expected rally may see the pair extending current upward corrective movement.
Technically the 4 hours chart shows indicators biased lower in negative territory, while 20 SMA extended its decline now around the 50% retracement of the same rally at 1.2455. Still the main resistance stands around 1.2485, strong static resistance and 61.8% retracement; if above this last, 1.2520 comes next. Below 1.2400 on the other hand, the decline should extend towards the year lows around 1.2360, and once this last gives up, open doors for an extension down to 1.2270/80 over the next sessions.
View Live Chart for EUR/USD
The pair holds to its latest gains after German GDP readings, confirming an earlier flash estimate of a 0.1% rise in seasonally-adjusted GDP in the third quarter due to a sharp rise in private consumption and a climb in exports. Later today it will be the turn of the US to release the second review of its GDP figures, expected at 3.3% from the advance reading of 3.5%: a better than expected number may help the greenback recover ground, whilst a worse than expected rally may see the pair extending current upward corrective movement.
Technically the 4 hours chart shows indicators biased lower in negative territory, while 20 SMA extended its decline now around the 50% retracement of the same rally at 1.2455. Still the main resistance stands around 1.2485, strong static resistance and 61.8% retracement; if above this last, 1.2520 comes next. Below 1.2400 on the other hand, the decline should extend towards the year lows around 1.2360, and once this last gives up, open doors for an extension down to 1.2270/80 over the next sessions.
View Live Chart for EUR/USD
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