EUR/USD: Indecisive market amid rising fears of currency wars
- The EUR/USD creted a doji candle yesterday, signaling indecision in the market.
- Rising fears of currency wars could keep the EUR under pressure.
Currently, the EUR/USD is mildly bid around 0.7350, having created a doji candle on Thursday.
The candlestick pattern indicates indecision in the market place and the pair will likely adopt a bearish/bullis bias depending on today's close. The pair is seen resuming the journey towards 1.1852 (June 14 high) if it closes above the yesterday's doji candle high of 1.1852 (June 14 high).
On the other hand, a close below 1.1575 would add credence to Tuesday's bearish outside-day candle and would shift risk in favor of a drop below 1.15 (psychological support).
The Yuan devaluation and the rising fears of full-blown currency war between the US and China could trigger risk aversion in the equities and keep the common curency under pressure. Moreover, a retaliatory action by the US could also force the ECB and other central banks to adopt a dovish stance.
No first tier data are scheduled for release in Europe and US, hence, the pair is at the mercy of the broader market sentiment.
EUR/USD Technical Levels
Resistance: 1.1692 (50-day moving average), 1.1745 (July 17 high), 1.1852 (June 14 high).
Support: 1.1575 (previous day's low), 1.1508 (June 21 low), 1.1450 (100-week moving average).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
