Monday, September 21, 2015

EUR/USD: bearish on 4hr chart - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar ended the week with gains against its European rival, despite the US Federal Reserve decided to leave its economic policy unchanged.

Key Quotes:

"The dollar's sell off extended into Friday, and the EUR/USD pair advanced up to 1.1459, turning sharply lower by the end of the day and closing right below 1.1300. There was no clear macroeconomic catalyst behind the fall, but more likely, seems failure of the EUR to extend its gains beyond a critical resistance area, as the pair has stalled and retreated several times from the 1.1460/7 region this year.

Greece is going to the polls this Sunday, which has little chances of affecting the common currency beyond some spikes at the opening, given that no matter who wins, the economic scenario will hardly change.

China will release a sentiment indicator later on in the day, with more chances of reaching a market that has been trading mostly on sentiment for already several weeks.

In the meantime, the technical picture continues lacking clear directional strength, as daily basis, the price has retreated back towards its 20 SMA that heads slightly lower around 1.1240, whilst the Momentum indicator has turned flat above the 100 level and the RSI indicator turned south, now around 53.

Nevertheless, the pair holds above its 100 and 200 SMAs, both pretty much flat and well below the current level, limiting the downside around 1.1080/1.1130. In the 4 hours chart, the price has broken below its 20 SMA, whilst the technical indicators indicate an increasing bearish potential, crossing their mid-lines towards the downside."
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