5 Mar 2015
EUR/USD downside risk towards 1.0960 – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, comments that the EUR has failed to act towards Draghi’s hawkish view regarding the eurozone economy, with technicals now supporting a slide towards 1.0960 on a break below the key 1.1000 support.
Key Quotes
“The EUR/USD pair raised following Draghi's initial speech, as the ECB president announced the Central Bank will begin purchasing bonds as soon as next Monday, albeit the pair quickly retraced towards fresh 11 year lows a few pips above 1.1000.”
“Despite the economic outlook has been reviewed to the upside, and the ECB president gave a positive review on how the economy is doing this year, selling interest around 1.1100 was way too much for the mild hawkish review.”
“Technically, the 1 hour chart shows that the price holds below a bearish 20 SMA, whilst the indicators gain strong bearish momentum below their mid-lines, supporting the ongoing slide.”
“In the 4 hours chart the technical indicators also present a strong bearish tone, with the RSI heading lower despite being in extreme overbought readings, pointing for a break down to 1.0960 should the 1.1000 level gives up.”
“Support levels: 1.1000 1.0960 1.0920”
“Resistance levels: 1.1050 1.1100 1.1145”
Key Quotes
“The EUR/USD pair raised following Draghi's initial speech, as the ECB president announced the Central Bank will begin purchasing bonds as soon as next Monday, albeit the pair quickly retraced towards fresh 11 year lows a few pips above 1.1000.”
“Despite the economic outlook has been reviewed to the upside, and the ECB president gave a positive review on how the economy is doing this year, selling interest around 1.1100 was way too much for the mild hawkish review.”
“Technically, the 1 hour chart shows that the price holds below a bearish 20 SMA, whilst the indicators gain strong bearish momentum below their mid-lines, supporting the ongoing slide.”
“In the 4 hours chart the technical indicators also present a strong bearish tone, with the RSI heading lower despite being in extreme overbought readings, pointing for a break down to 1.0960 should the 1.1000 level gives up.”
“Support levels: 1.1000 1.0960 1.0920”
“Resistance levels: 1.1050 1.1100 1.1145”