EUR/USD: sellers capping the upside

by Admin

Despite better than expected ZEW survey data, the EUR/USD continues to be limited to the upside by strong selling interest, aligned around recent highs in the 1.3370 area. The pair not only failed to break higher, but quickly lost ground to test a short term ascendant trend line around 1.3330. While technical readings maintain a neutral stance following the lack of volume since the week started, the pair maintains a bearish outlook as per trading below a bearish 20 SMA in the 4 hours charts while unable to break higher. 

The key support continues to the 1.3300 area, where the pair presents now the daily ascendant trend line coming from 1.2660. A break below the level should signal a downward continuation up to 1.3220 today, followed later by 1.3170 price zone.

Upward rallies should provide selling opportunities up to 1.3440, roof of the daily descendant channel coming from 1.3710.

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