Euro tumbled with the European opening, despite stocks quick started the day with a firm tone. But market belief the ECB will jump into covered bond buying for weaker economies, despite the reiterated denials, continues to weight in the common currency that finally broke below 1.2700 and extended its slide down to 1.2680. Alongside with speculation over bond purchases, the ECB will release the results of a banking stress test on upcoming October 26th and market speculates many will fail.
Trading a few pips below the critical figure, the 4 hours chart shows price developing below a bearish 20 SMA while indicators head lower below their midlines, supporting some downward continuation. Furthermore, the pair broke below a daily ascendant trend line coming from 1.2501: price may attempt now a pullback to it around 1.2720 yet if the level holds, the downside is favored towards 1.2660 strong static support zone. Break below this last will see the downward extension reaching 1.2620/30 price zone before the day is over.
A recovery above 1.2720 on the other hand, will lift bulls’ hopes, helping the pair recover up to 1.2750/70 price zone.
View Live Chart for EUR/USD
Trading a few pips below the critical figure, the 4 hours chart shows price developing below a bearish 20 SMA while indicators head lower below their midlines, supporting some downward continuation. Furthermore, the pair broke below a daily ascendant trend line coming from 1.2501: price may attempt now a pullback to it around 1.2720 yet if the level holds, the downside is favored towards 1.2660 strong static support zone. Break below this last will see the downward extension reaching 1.2620/30 price zone before the day is over.
A recovery above 1.2720 on the other hand, will lift bulls’ hopes, helping the pair recover up to 1.2750/70 price zone.
View Live Chart for EUR/USD
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