Monday, November 2, 2015

EUR/USD: bears in control below 55 week MA

FXStreet (Guatemala) - EUR/USD is currently trading at 1.1030 with a high of 1.1044 and a low of 1.1026.

EUR/USD's bearish flag formation could be starting to play its roll as the price begins to challenge the downside again after the minor recovery up towards the drop zone of last week's FOMC induced bearish spike of 200 pips.

EUR/USD recovered as the month end flows drew the major to close the month better bid ahead of a key week to start the month with Nonfarm Payrolls to dictate the direction of price in the near term while Draghi and the ECB's intent to reach their inflation target of 2% and possible means to get there with expansion of QE should keep the single currency on the back foot vs a hawkish FOMC.

EUR/USD levels

Technically, EUR/USD trade on no man's land while moving between key breakout levels. The upside has key resistance at the 55 week ma and 2014-2015 downtrend at 1.1415/28. The downside key levels below 1.0940 are 1.0855 6th Aug lows and 1.0808 19th July low. While price remains below the 200 DMA, at 1.1109 currently, downward pressures should persist.
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