31 Jan 2014
Flash: EUR/USD led as dollar extends gains - FXStreet
FXstreet.com (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that EUR/USD has accelerated to a post a fresh 2 month low in the 1.3500 area ahead of US opening, despite one may expect some profit taking on end month.
Key Quotes
“But dollar maintains the strong food acquired with latest FED movement, and the EUR continues to weaken on deflationary pressures, as earlier today, EU annual inflation drop back to 0.7%.”
“Technically, the hourly chart shows indicators corrected the extreme oversold readings from yesterday, and retrace now from their midlines, heading south again. 20 SMA in the same time frame, is acting as dynamic resistance in the 1.3550 area, while the 4 hours chart shows also a strong bearish potential despite indicators stand in oversold territory.”
“The negative tone among stocks and the risk aversion sentiment continue to favor the downside in the pair, with market players now eyeing key 1.3440 static support zone.”
“Support levels: 1.3470 1.3440 1.3400. Resistance levels: 1.3520 1.3550 1.3590.”
Key Quotes
“But dollar maintains the strong food acquired with latest FED movement, and the EUR continues to weaken on deflationary pressures, as earlier today, EU annual inflation drop back to 0.7%.”
“Technically, the hourly chart shows indicators corrected the extreme oversold readings from yesterday, and retrace now from their midlines, heading south again. 20 SMA in the same time frame, is acting as dynamic resistance in the 1.3550 area, while the 4 hours chart shows also a strong bearish potential despite indicators stand in oversold territory.”
“The negative tone among stocks and the risk aversion sentiment continue to favor the downside in the pair, with market players now eyeing key 1.3440 static support zone.”
“Support levels: 1.3470 1.3440 1.3400. Resistance levels: 1.3520 1.3550 1.3590.”