The week ends with the EUR/USD posting a lower low for the year at 1.2485, holding a handful pips above it by London close. During the last 3 trading days, the pair gave up almost all of its October gains, ending the month finally in red. Therefore, the advance up to 1.2886 was barely corrective, and the pair is poised to extend its decline. Next week, fundamentals with also take center stage with the ECB monthly meeting and US Payrolls, but latest data and developments suggest there are little chances for a trend reversal.
Technically, the weekly chart shows indicators turned back south in oversold territory after limited corrections, while 20 SMA maintains a clear bearish slope well above current price, all of which supports the ongoing bearish strength. In the daily chart price failed to regain its 20 SMA, now around 1.2690, while indicators turned back lower below their midlines.
Price action will likely be choppy early next week, with upward corrections seen limited by above mentioned 1.2690, but selling higher will likely be the norm. Next strong support stands at 1.2440, and once below there’s not much in the way down to 1.2370, where the pair presents several weekly historical highs and lows. If the level gives up by next Friday, 1.2000 becomes the next realistic target in the pair.
The 1.2620 price zone comes as immediate resistance and first strong selling level, followed by 1.2690. A price acceleration above it should signal another round of short covering and profit taking, base of an upward correction up to 1.2780 price zone, the land in the sand for the ongoing bearish trend.
View Live Chart for EUR/USD
Technically, the weekly chart shows indicators turned back south in oversold territory after limited corrections, while 20 SMA maintains a clear bearish slope well above current price, all of which supports the ongoing bearish strength. In the daily chart price failed to regain its 20 SMA, now around 1.2690, while indicators turned back lower below their midlines.
Price action will likely be choppy early next week, with upward corrections seen limited by above mentioned 1.2690, but selling higher will likely be the norm. Next strong support stands at 1.2440, and once below there’s not much in the way down to 1.2370, where the pair presents several weekly historical highs and lows. If the level gives up by next Friday, 1.2000 becomes the next realistic target in the pair.
The 1.2620 price zone comes as immediate resistance and first strong selling level, followed by 1.2690. A price acceleration above it should signal another round of short covering and profit taking, base of an upward correction up to 1.2780 price zone, the land in the sand for the ongoing bearish trend.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD remains on the defensive near 1.0680 on Dollar strength
The solid performance of the Greenback keeps the price action in the risk-associated universe depressed so far on turnaround Tuesday, sending EUR/USD to multi-day lows in the 1.0680 region.
GBP/USD declines toward 1.2500 on renewed USD strength
GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.
Gold stable below $2,300 despite mounting fears
Gold stays under selling pressure and confronts the $2,300 region on Tuesday against the backdrop of the resumption of the bullish trend in the Greenback and the decent bounce in US yields prior to the interest rate decision by the Fed on Wednesday.
XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.
Eurozone inflation stable as the outlook on prices gets increasingly muddied
Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.