EUR/USD: Ready to challenge a 3-day low

by Admin

The EUR/USD changed bias and fell strongly with the European session opening, dragged lower by EUR/JPY bearish tone and failure to break above key resistance level of 1.3115 over the last few days. Longs are taking some profits out of the table also, as stocks edged lower in Asia, while local share markets are also holding the red. Poor EMU’s industrial production figures that posted an annual contraction of 3.1% are also weighing on the common currency.

The EUR/USD trades around 1.3040/50, where it has set its daily lows over the last 3 days, with also several daily highs around the area, making of it a strong static support zone: a break below will only exacerbate the negative sentiment, with 1.2970/1.3000 area then at sight for today. 4 hours chart shows price below 20 SMA and indicators entering negative territory, supporting the bearish continuation: price needs to establish above 1.3080 to deny the downward bias, and attempt a recovery back to 1.3110/30 price zone. 

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