There and back again in EUR/USD on short covering and MA

FXStreet (San Francisco) - First reaction following ECB announcement was a fast and furious decline to test 1.3500 area; however the pair bounced hard at this level and now it's trading at previous prices even having posted a daily high of 1.3652.

The EUR/USD extended short covering from lows but the pair was unable to breah above 200-day moving average. Currently, EUR/USD is trading at 1.3617, up 0.14% on the day, having posted a daily high at 1.3654 and low at 1.3503.

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

EUR/USD sentiment

The ECB raised its EUR/USD forex assumptions to 1.3800 2014, 2015, 2016. "Look for additional gains if EUR/USD can establish a base above the 200-day average (1.3648). 1.3736, the 100-day moving average is a logical target," commented Jamie Coleman from FXBeat.

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