EUR/USD: Risk turns to the downside

by Admin

Market is dominated by risk aversion after disappointing Chinese GDP overnight, that sent stocks and commodities strongly down during Asian hours. European morning sees dollar and yen holding near daily highs against most rivals, particularly commodity currencies that took it worse so far. The EUR/USD still stands above past week low around 1.3040 and strong static support level, with the 4 hours chart showing price below a flat 20 SMA, and indicators presenting a neutral stance, hovering around their midlines. With not much momentum at the time being, risk to the downside increased, an acceleration below 1.3040 should trigger a downside continuation movement towards 1.2980/1.3000 area. 

Recoveries are still seen limited by 1.3110/20 Fibonacci area, and even above it price will face strong selling interest around 1.3150 strong static resistance level. Only steady gains above this last, not seen for today, may see the pair resuming former bullish trend.

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