After falling down to 1.0519 on Monday, the EUR/USD pair has been steadily rising this week, reaching on Friday a high of 1.0847, from where the pair retraced, more on profit taking than on dollar strength. The dominant themes were once again, tepid dollar data and Greek woes. The ECB had its economic policy meeting, but it was pretty much a non-event, as it left its policy unchanged.
But continued weaker-than-expected US macroeconomic readings have been the key market driver, sending the dollar lower across the board, with the EUR benefiting partially. The wires were fulfilled with FED's officials comments, pointing out that a rate hike in the US will likely come later in the year, another factor weighing on the greenback.
As for what's next, the daily chart shows that the price stalled around a mild bearish 20 SMA, whilst the technical indicators recovered up to their mid-lines, where they stand. The weekly chart shows that the 20 SMA maintains a strong bearish slope well above the current level, too far away to be taken into account for the next week, whilst the technical indicators aim higher from extreme oversold levels. In this last time frame, the RSI stands at 32, suggesting further corrections are possible, but not yet confirming a bottom. The pair needs to overcome the mentioned high at 1.0847 next week, to be able to extend up to 1.0950, a strong static resistance level. Beyond this last, the highs in the 1.1040/50 region are next. And it will take a clear break above this last, to confirm the mentioned bottom.
On the other hand, the immediate support comes at 1.0590, with renewed selling interest below it opening doors for a retest of the year low of 1.0461. If this last gives up, market will be looking for parity up next.
View Live Chart for EUR/USD
But continued weaker-than-expected US macroeconomic readings have been the key market driver, sending the dollar lower across the board, with the EUR benefiting partially. The wires were fulfilled with FED's officials comments, pointing out that a rate hike in the US will likely come later in the year, another factor weighing on the greenback.
As for what's next, the daily chart shows that the price stalled around a mild bearish 20 SMA, whilst the technical indicators recovered up to their mid-lines, where they stand. The weekly chart shows that the 20 SMA maintains a strong bearish slope well above the current level, too far away to be taken into account for the next week, whilst the technical indicators aim higher from extreme oversold levels. In this last time frame, the RSI stands at 32, suggesting further corrections are possible, but not yet confirming a bottom. The pair needs to overcome the mentioned high at 1.0847 next week, to be able to extend up to 1.0950, a strong static resistance level. Beyond this last, the highs in the 1.1040/50 region are next. And it will take a clear break above this last, to confirm the mentioned bottom.
On the other hand, the immediate support comes at 1.0590, with renewed selling interest below it opening doors for a retest of the year low of 1.0461. If this last gives up, market will be looking for parity up next.
View Live Chart for EUR/USD
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