FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the common currency has been the worst performer this week, already weakened after the ECB announced it may extend its easing program next December.
Key Quotes:
"The EUR/USD pair shed around 400 pips in the last two trading days, with almost no upward corrective movements in the middle, falling as low as 1.0995 before bouncing some."
"The pair has broken below a long term ascendant trend line coming from April low at 1.0519, and the break has strong bearish implications, regardless whatever the US FED announces this week in its Thursday´s policy meeting. As long as upward corrective movements meet selling interest around 1.1120, the downside remains favored."
"Technically, the daily chart shows that the pair is currently below its moving averages, with the 200 DMA converging with the broken trend line around 1.1120, the mentioned critical resistance, whilst the technical indicators maintain their strong bearish slopes below their mid-lines."
"In the 4 hours chart, the technical indicators have lost their bearish potential, but remain in extreme oversold readings, far from suggesting the pair may correct higher. Renewed selling interest below 1.1000, should lead to a continued decline down to 1.0920 this Monday, with the ultimate bearish target for this week at 1.0840."
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