EUR/USD: Resuming the downside below 1.3375

by Admin

The EUR/USD broke above the daily descendant trend line coming from 1.3710, rising to a daily high of 1.3433, as risk appetite extended over Asian hours. However, market mood is turning negative after early European data, particularly driven by BOE minutes, showing the 3 out of 9 members voted for further easing. While the GBP/USD nose dives, dollar demand increased, putting EUR/USD under short term pressure: the pair is back below the trend line around the 1.3400 area, and technical readings in the 4 hours chart are losing earlier momentum, although still positive. 1.3175 area has prove strong on attempts to rise, and that’s the support to follow, as once below, the pair will likely extend its slide towards the 1.3310/30 price zone.

A quick recovery above 1.3410 on the other hand, will suggest buyers are still in control, with a break above daily high favoring a continuation towards the 1.3480/90 price zone.

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