EUR/USD: a better bid tone testing the 200 4-hourly smoothed sma

EUR/USD is currently trading at 1.0607 with a high of 1.0629 and a low of 1.0598 and is resisted by the 200 4-houtly smoothed sma located at 1.0620.

Federal Reserve: Game on? - ANZ

EUR/USD was bid at the close last week after Yellen's hawkish speech and lifted by news of French populist Le Pen’s slippage in favour of independent Macron. The dollar closed lower at the end of lat week weighed by Yellen's comment where she signalled a March hike as likely, BUT, only gradualism beyond. At the same time, the bidder tone in the euro could be related to the possibility of the ECB moving away from the dovish end of the spectrum. 

Analysts at Rabobank explained that with Draghi basically pre-committing to QE throughout 2017 last December, it seems that some hawks have chosen a different attack vector: calling for changes in the ECB’s forward guidance instead. "This would involve dropping the ‘or lower’ from the well-known adage that "[rates] remain at present or lower levels for an extended period of time", to signal that the ECB’s policy outlook is slowly moving away from the dovish end of the spectrum," explained that analysts adding, "While we believe now isn’t the time for the ECB to change its tone on rates, the market is slowly starting to account for a potential adjustment over the course of this year."

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the daily chart shows that the recovery stalled below a sharply bearish 20 SMA, whilst the Momentum indicator has turned flat around its 100 level, failing to enter positive territory, whilst the RSI hovers around 43. "In the 4 hours chart, technical readings support a short-term bullish continuation, as the price broke higher pass its 20 and 100 SMAs that anyway maintain their bearish slopes, whilst technical indicators hold well above their mid-lines, barely paring their advances ahead of the weekly close. The recovery can extend up to the critical 1.0700/20 price zone, although strong selling interest is expected to surge around this last, if reached."