Another week, another round of concerns over the Euro zone and what’s next for economic policies: the EUR/USD closes the week with strong losses, erasing almost all previous one gains, having spent most of the last 2 days stuck where it stands, around 1.2660. Market players await news from ECB banks’ stress test, and FED meeting next Wednesday, and will hardly left current comfort zone until then.
Technically, the weekly chart shows once again, the selling interest around the 1.2780/90 price zone contained attempts of regaining the upside, with a lower high and a lower low pointing for more weakness yet to come. The same chart also shows that RSI finally corrected the extreme oversold levels and hovers around 29, losing the upward slope also supporting the bearish bias, while momentum losses strength deep in the red. In the daily chart indicators present some upward momentum above their midlines, reflecting Friday’s gains, but with price below 1.2700, such reading is pretty meaningless. In this same chart, 20 SMA has lost the strong bearish slope seen during the last few months, but price has been unable to pick up above it, after breaking lower earlier on the week.
The future seems a bit blur at this point at least for next week, furthermore considering the above mentioned pending fundamental events, but as long as price remains below mentioned 1.2780/90, the upward potential will remain limited. Some steady gains above it, or even a daily close, should favor some upward continuation, eyeing the 1.2945, 38.2% retracement of the latest bearish run, as the ultimate bullish target for next week. To the downside, demand surged on approaches to 1.2600/20 price zone, so bulls around the level should capitulate before a new leg towards the low of the year at 1.2501 is achieved. If somehow this last gives up during next week, next target comes as 1.2370, strong static support.
View Live Chart for EUR/USD
Technically, the weekly chart shows once again, the selling interest around the 1.2780/90 price zone contained attempts of regaining the upside, with a lower high and a lower low pointing for more weakness yet to come. The same chart also shows that RSI finally corrected the extreme oversold levels and hovers around 29, losing the upward slope also supporting the bearish bias, while momentum losses strength deep in the red. In the daily chart indicators present some upward momentum above their midlines, reflecting Friday’s gains, but with price below 1.2700, such reading is pretty meaningless. In this same chart, 20 SMA has lost the strong bearish slope seen during the last few months, but price has been unable to pick up above it, after breaking lower earlier on the week.
The future seems a bit blur at this point at least for next week, furthermore considering the above mentioned pending fundamental events, but as long as price remains below mentioned 1.2780/90, the upward potential will remain limited. Some steady gains above it, or even a daily close, should favor some upward continuation, eyeing the 1.2945, 38.2% retracement of the latest bearish run, as the ultimate bullish target for next week. To the downside, demand surged on approaches to 1.2600/20 price zone, so bulls around the level should capitulate before a new leg towards the low of the year at 1.2501 is achieved. If somehow this last gives up during next week, next target comes as 1.2370, strong static support.
View Live Chart for EUR/USD
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