14 Apr 2014
Bearish EUR/USD corrections eyeing 1.3720 - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst comments that the weekend jawboning from ECB officers has took its toll on the EUR this Monday.
Key Quotes
“The common currency eases against the greenback, trading in the 1.3820 price zone despite EU Industrial Production rose as expected monthly basis by 0.2% and up to 1.7% yearly basis. Draghi particularly concerned on “exchange rates” gave the kick start on Saturday, but Noyer and Coeure, both part of the Central Bank, also down talked the currency in this weekly start, joining German’s Weidmann.”
“Adding to the picture, mild risk aversion surged amid tensions in between Ukraine and Russia, albeit stocks hold around their opening levels, quite steadied and showing a tight range so far today.”
“As for the technical picture the 4 hours chart shows price below a still bullish 20 SMA, now around the daily high of 1.3862, while indicators present a strong bearish slope, crossing their midlines to the downside. The pair has also failed to close an opening gap around 1.3890, past Friday close.”
“At this point, the movement seems mostly corrective, with a break below 1.3810 favoring a test of the strong support area around 1.3780. A price acceleration below this last should trigger further downward pressure today with 1.3720/30 area up next. However, it will be once this last gives up that buyers may enter in panic mode and feed the sell off towards 1.3640/60 area, quite unlikely in the short term.”
“A recovery above 1.3850 should see price recovering ground and attempting to fill mentioned gap around 1.3890 yet only above 1.3910 the pair will shrug off the bearish risk.”
Key Quotes
“The common currency eases against the greenback, trading in the 1.3820 price zone despite EU Industrial Production rose as expected monthly basis by 0.2% and up to 1.7% yearly basis. Draghi particularly concerned on “exchange rates” gave the kick start on Saturday, but Noyer and Coeure, both part of the Central Bank, also down talked the currency in this weekly start, joining German’s Weidmann.”
“Adding to the picture, mild risk aversion surged amid tensions in between Ukraine and Russia, albeit stocks hold around their opening levels, quite steadied and showing a tight range so far today.”
“As for the technical picture the 4 hours chart shows price below a still bullish 20 SMA, now around the daily high of 1.3862, while indicators present a strong bearish slope, crossing their midlines to the downside. The pair has also failed to close an opening gap around 1.3890, past Friday close.”
“At this point, the movement seems mostly corrective, with a break below 1.3810 favoring a test of the strong support area around 1.3780. A price acceleration below this last should trigger further downward pressure today with 1.3720/30 area up next. However, it will be once this last gives up that buyers may enter in panic mode and feed the sell off towards 1.3640/60 area, quite unlikely in the short term.”
“A recovery above 1.3850 should see price recovering ground and attempting to fill mentioned gap around 1.3890 yet only above 1.3910 the pair will shrug off the bearish risk.”