EUR/USD extends rejection slide from 1.23 handle, refreshes session lows

Haresh Menghani FXStreet

The EUR/USD pair extended its rejection slide from the 1.2300 neighborhood and refreshed session lows in the last hour.

Despite a modest pullback in the US Treasury bond yields and growing concerns over a possible US government shutdown, a modest US Dollar uptick was seen exerting some downward pressure through the early NA session.

Meanwhile, the market seems to have largely ignored the latest US political headlines, via Fox News, that Republicans are preparing for several days of government shutdown.

Even some bullish Euro news, quoting ECB sources, that the central bank's governing council was relatively relaxed about the recent Euro appreciation and policy wordings are most likely to be changed in March, with reviving greenback demand acting as an exclusive driver of the pair's slide to the 1.2230 region.

Next in focus would be the release of Prelim UoM Consumer Sentiment from the US, which along with speeches from various FOMC members would now be looked upon for some trading opportunities on the last trading day of the week.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The 4 hours chart presents a neutral-to-bullish stance, as the price advances slowly above a flat 20 SMA, while technical indicators stand within positive territory, but with no clear directional strength.”

“Below 1.2230, the upward potential decreases, with the next intraday supports at 1.2200 and 1.2165, this last the weekly low” she further added.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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