EUR/USD extends rejection to 200 hours MA at 1.2470

Mauricio Carrillo Witbrew

FXStreet (San Francisco) - The Euro extended its rejection of the 1.2500 area against the dollar an now the pair is testing its 200 hours MA level at 1.2470.

Earlier in the day, the EUR/USD rallied to test the 1.250 while reaching an intraday high of 1.2505. However, the couple found a selling interest that sent it back to to prices below 1.2500. Currently, EUR/USD is trading at 1.2475, up 0.29% on the day, having posted a daily high at 1.2508 and low at 1.2419.

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish.

EUR/USD sentiment

In the long term, the EUR/USD seems to be in the bearish trend as Morgan Stanley commented that "Selling EUR/USD is" their "best trade for 2015." The banks favors "selling EUR/USD, targeting 1.12 for end-2015.”

However, the story seems different in the short term as pair is trading higher on Monday. According to Pablo Piovano, "the low-1.2500s yet remains quite a tough barrier amongst EUR-bulls, although the ECB meeting on Thursday carries the potential for either a breakout of that resistance zone or a deep retracement to test recent lows in the 1.2360 region."

Below the 200-hour MA level of 1.2470, the EUR/USD will find supports at 1.2460, 1.2425 and 1.2415. To the upside, resistances are at 1.2500, 1.2520 and 1.2530.

Author

Mauricio Carrillo

Witbrew

Mauricio Carrillo is a financial journalist, fintech executive, and inter-markets analyst with fifteen years of experience at the intersection of traditional finance and digital asset infrastructure.

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