FXstreet.com (Córdoba) - The rally of the euro against the dollar lost steam after the Wall Street opening, with EUR/USD retreating from a weekly high of 1.2170 as disappointing US housing data, put stocks and other risky assets under pressure.
EUR/USD has pulled back toward the 1.2115 area where the 10-hour SMA offered some support and currently the pair is quoting at the 1.2120/25 region, still up 0.5% on the day.
From a technical perspective, Slobodan Drvenica, analyst at Windsor Brokers Ltd, says that to confirm near-term bulls, "regain of 1.2180 and 1.2200, where 55 day EMA currently lies is required, as overbought hourly conditions, with Stochastic already moving lower, suggest fresh reversal".
"Loss of 1.2100 level would increase downside risk and bring bears back to play", the analyst adds.
EUR/USD has pulled back toward the 1.2115 area where the 10-hour SMA offered some support and currently the pair is quoting at the 1.2120/25 region, still up 0.5% on the day.
From a technical perspective, Slobodan Drvenica, analyst at Windsor Brokers Ltd, says that to confirm near-term bulls, "regain of 1.2180 and 1.2200, where 55 day EMA currently lies is required, as overbought hourly conditions, with Stochastic already moving lower, suggest fresh reversal".
"Loss of 1.2100 level would increase downside risk and bring bears back to play", the analyst adds.
