EUR/USD: Bears to lead below 1.3000

by Admin

Lacking attractive this Monday, the EUR/USD trades near the base of its recent range, barely holding above 1.3040, as jawboning regarding a rate cut in Europe, as early as next month continues. Dollar advances against most rivals, but major’s movements have been limited so far today. The EUR/USD 4 hours chart shows 20 SMA gaining a strong bearish slope, capping the upside now around 1.3070, while indicators stands flat in negative territory. A not so neat H&S figure is under way, with the high set at 1.3200 past week, and the neckline around 1.3000: a break below this last should lead to a quick slide  towards 1.2970, and if buying interest aligned there is unable to push the pair back above 1.3000, further losses are to be expected after some consolidation towards 1.2920/30 price zone.

Steady recoveries above 1.3070, may see the pair attempting to test 1.3115 area, but buying is only recommended on steady gains above this last.  

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