EUR/USD: time to be patient

Market has awakened this Tuesday, with the EUR/USD suffering a kneejerk down to 1.3266: the early session weakness of the common currency was boosted by a market rumor of Bundesbank President Weidman resignation, later denied. Along with the denial, ZEW European sentiment survey posted a surprisingly positive reading, up to 31.2 from 7.6, while German one came out in the same line. The EUR/USD not only erased the over 70 pips slide, but trades back around 1.3350 area, having been has high as 1.3370 today. 

Despite the intraday wide range and noise however, the pair maintains a neutral stance according to the 4 hours chart: not only technical readings lack momentum but price remains in its one week 150 pips range. Strong bounce from near the base of it, also 38.2% retracement of the latest bullish run, is however significant as reflects buying interest still aligned in the area. 

If current upward momentum extends, the pair needs to take daily high of 1.3370, to extend towards 1.3400/10 area. Only a clear break above will signal an upward continuation that can extend near 1.3485, past 2012 high. On the other hand, there’s downside room in between 1.3290 and 1.3250/60 area, yet only below this last bears will take control. Is time to be patient with the EUR/USD and wait for a clearer picture

View Live Chart for EUR/USD


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