The EUR/USD eased for second week in a row, having broken below former year low of 1.3475, in a movement technically driven, as there was little fundamental data to trigger moves. Risk sentiment was also out of the question, considering that despite Middle East crisis continues escalating, stocks advanced for most of the week, easing big on Friday, but on earning woes.
Technically, the pair presents a strong bearish potential according to the daily chart, as 20 SMA turned strongly down well above current price, while indicators stand in negative territory, with RSI still heading south despite in oversold territory. Mentioned 1.3475 level has been attracting sellers, as price retraced from there for third consecutive day towards lower lows, so as long as below the level the downside is favored towards 1.3295 November 2013 monthly low. An intermediate support stands at 1.3390, where the pair presents several daily highs and lows from late 2013, early 2014.
Next week, several first line readings from the US will be released, including FOMC Meeting, GDP and employment figures: if the readings support local economic recovery, fresh lows should be expected in the pair, with a break below mentioned 1.3295 exposing 1.3200/30 as probable bottom.
At this point, chances of an upward recovery seem quite limited, mostly because European data has been sluggish and market players still believe the ECB may implement some sort of QE before the year is over. Above mentioned 1.3475 however, the pair may recover 100 pips and test 1.3570/80 price zone, which stands as critical midterm resistance, as it will be only above this last the bearish potential will be reversed.
View Live Chart for EUR/USD
Technically, the pair presents a strong bearish potential according to the daily chart, as 20 SMA turned strongly down well above current price, while indicators stand in negative territory, with RSI still heading south despite in oversold territory. Mentioned 1.3475 level has been attracting sellers, as price retraced from there for third consecutive day towards lower lows, so as long as below the level the downside is favored towards 1.3295 November 2013 monthly low. An intermediate support stands at 1.3390, where the pair presents several daily highs and lows from late 2013, early 2014.
Next week, several first line readings from the US will be released, including FOMC Meeting, GDP and employment figures: if the readings support local economic recovery, fresh lows should be expected in the pair, with a break below mentioned 1.3295 exposing 1.3200/30 as probable bottom.
At this point, chances of an upward recovery seem quite limited, mostly because European data has been sluggish and market players still believe the ECB may implement some sort of QE before the year is over. Above mentioned 1.3475 however, the pair may recover 100 pips and test 1.3570/80 price zone, which stands as critical midterm resistance, as it will be only above this last the bearish potential will be reversed.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
USD/JPY briefly recaptures 160.00, then pulls back sharply
Having briefly recaptured 160.00, USD/JPY pulls back sharply toward 159.00 on potential Japanese FX intervention risks. The Yen tumbles amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
AUD/USD extends gains above 0.6550 on risk flows, hawkish RBA expectations
AUD/USD extends gains above 0.6550 in the Asian session on Monday. The Aussie pair is underpinned by increased bets of an RBA rate hike at its May policy meeting after the previous week's hot Australian CPI data. Risk flows also power the pair's upside.
Gold stays weak below $2,350 amid risk-on mood, firmer USD
Gold price trades on a softer note below $2,350 early Monday. The recent US economic data showed that US inflationary pressures stayed firm, supporting the US Dollar at the expense of Gold price. The upbeat mood also adds to the weight on the bright metal.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.