This must have been one of the most boring weeks in the history of the EUR/USD pair that lacked direction and volume, ever since the US published an impressive employment report last Friday. The lackluster prevailed, despite central bankers' jawboning both shores of the Atlantic, and plenty of macroeconomic data releases.
In regards of the economic policies' future, nor Draghi, neither Yellen and their courts, offered something new. The ECB is in its way to extend its QE next December, and there was even some talking about the Central Bank front-loading assets purchases before December. FED's officers on the other hand, has been discussing the pace of the upcoming rate hikes, rather than if a rate hike is coming, for the most, giving it for granted.
View the Live chart of the EUR/USD
The week ends with soft data in both economies this Friday, but worse-than-expected US Retail Sales and PPI data for October, was not enough to push the dollar lower, as the currency remains near its weekly opening against its European counterpart.
Technically, the daily chart shows that these days have helped technical readings to correct the extreme oversold readings reached last week, but that they remain well below their mid-lines, and the RSI indicator is even turning lower around 32, in line with further declines. In the same chart, the 20 SMA has accelerated further lower above the current level, and stands now around 1.0920. In the weekly chart, the technical indicators have lost their downward strength below their mid-lines, but the price remains below its 20 SMA, in line with the ongoing bearish momentum.
The weekly low was set at 1.0673, which means that an extension below it should signal further declines this week, with a first bearish target at 1.0520, April this year low. If the level is taken, the year low of 1.0460 is next. So far, advances towards the 1.0800 level have attracted selling interest, but a strong resistance comes at 1.0840, the former base of the monthly range. Above it, the pair can rally another 100 pips, up to the 1.0940 price zone, before resuming its decline, as it will take a weekly close above 1.1000 to start talking about a reversal, something quite unlikely at this point.
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