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30 Dec 2014
EUR/USD bearish tone prevails – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, explains that the bearish tone for the EUR/USD pair prevails, which could take the pair towards the 1.2080 price zone if it breaks below its daily low at 1.2123.
Key Quotes
“The EUR/USD pair extended its decline down to 1.2123, fresh 2-year low, before profit taking took over the market. The dollar is down across the board albeit limited, in thin winter-holiday markets. Having reached a daily high of 1.2186, the EUR/USD pair trades around former year low at 1.2160, far from suggesting a bottom has been reached.”
“Technically, the 4 hours chart for the EUR/USD shows that price was unable to overcome its 20 SMA that continues to offer dynamic resistance around 1.2185, whilst momentum holds below 100 and RSI turns south around 37 after correcting oversold readings.”
“Overall, the bearish tone prevails, with a break below the daily low probably seeing the pair extending its decline down to 1.2080 price zone.”
“Profit taking and risk aversion on the other hand, may see the pair accelerating north, with a break above the daily high favoring an upward extension up to 1.2220 price zone.”
Key Quotes
“The EUR/USD pair extended its decline down to 1.2123, fresh 2-year low, before profit taking took over the market. The dollar is down across the board albeit limited, in thin winter-holiday markets. Having reached a daily high of 1.2186, the EUR/USD pair trades around former year low at 1.2160, far from suggesting a bottom has been reached.”
“Technically, the 4 hours chart for the EUR/USD shows that price was unable to overcome its 20 SMA that continues to offer dynamic resistance around 1.2185, whilst momentum holds below 100 and RSI turns south around 37 after correcting oversold readings.”
“Overall, the bearish tone prevails, with a break below the daily low probably seeing the pair extending its decline down to 1.2080 price zone.”
“Profit taking and risk aversion on the other hand, may see the pair accelerating north, with a break above the daily high favoring an upward extension up to 1.2220 price zone.”