EUR/USD fell sharply Friday, turning short-term outlook into negative, after European Central Bank President, Mario Draghi, said the bank will do what it must to raise inflation back to its target of 2%, fueling expectations of a full-blown QE program. EUR/USD lost more than 130 pips and hit a weekly low of 1.2423 on the back of dovish comments.
Technically speaking, EUR/USD short-term perspective has turned bearish, with indicators pointing down below their midlines. However, with the RSI in oversold levels in 1-hour charts, the euro might enjoy a consolidation phase ahead of another leg lower. Next support stands at 1.2400, and a break below would signal the end of the correction and resume the broader bearish trend, with 2014 low at 1.2357, as immediate target.
On the other hand, EUR/USD needs to regain the 1.2560 area (38.2% Fibo of 1.2882-1.2357) to ease the bearish pressure.
View Live Chart for EUR/USD
Technically speaking, EUR/USD short-term perspective has turned bearish, with indicators pointing down below their midlines. However, with the RSI in oversold levels in 1-hour charts, the euro might enjoy a consolidation phase ahead of another leg lower. Next support stands at 1.2400, and a break below would signal the end of the correction and resume the broader bearish trend, with 2014 low at 1.2357, as immediate target.
On the other hand, EUR/USD needs to regain the 1.2560 area (38.2% Fibo of 1.2882-1.2357) to ease the bearish pressure.
View Live Chart for EUR/USD
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