The market is seeing a slow start of the week with the dollar easing some against its major rivals, although the movements lack momentum due to the heavy look in stocks over the world: the Nikkei closed down and European indexes are trading in red along with US futures. Nevertheless, The EUR/USD has managed to extend its bounce up to 1.3720, halting around the 50% retracement of its latest daily bullish run, remaining unable to regain it ever since last Thursday ECB meeting.
Technically the 4 hours chart shows indicators aiming higher from oversold readings, while 20 SMA maintains a strong bearish slope above current price, offering dynamic resistance around 1.3730 also past Friday US session high, becoming then the immediate resistance level to break to confirm a bullish extension towards the 1.3750/80 price zone.
The downside is being defended by buyers around 1.3660 (61.8% retracement of the same rally) and 1.3680, a long term ascendant trend line coming from 1.2755: it takes a price acceleration below this area to trigger a bearish run, looking then for a test of 1.3600/20 price zone.
View Live Chart for EUR/USD
Technically the 4 hours chart shows indicators aiming higher from oversold readings, while 20 SMA maintains a strong bearish slope above current price, offering dynamic resistance around 1.3730 also past Friday US session high, becoming then the immediate resistance level to break to confirm a bullish extension towards the 1.3750/80 price zone.
The downside is being defended by buyers around 1.3660 (61.8% retracement of the same rally) and 1.3680, a long term ascendant trend line coming from 1.2755: it takes a price acceleration below this area to trigger a bearish run, looking then for a test of 1.3600/20 price zone.
View Live Chart for EUR/USD
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