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11 Mar 2014
Flash: EUR/USD downward correction underway - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that EUR/USD is under mild pressure this Tuesday, easing towards 1.3830 price zone, mostly in corrective mode.
Key Quotes
“The consolidative stage that extended through Monday turned into a bearish corrective movement, albeit limited so far, as price stands well above the 1.3800 figure immediate support.”
“Early data shown German Trade surplus shrank below expected while ECB is showing its first signs of concern over overvalued EUR, with ECB’s Constancio stating that the Central Bank can “still cut rates and implement QE or buy assets.””
“However, I believe it would take more than talking to drag the pair down. Nevertheless the 4 hours chart shows price right below its 20 SMA as indicators continue to correct overbought readings, reaching their midlines and momentum turning flat right around it. A price acceleration below 1.3810 may lead to a test of 1.3770 strong static support area, while if below, the slide may extend down to 1.3730 area, base of the daily ascendant channel.”
“On the other hand, a recovery above 1.3850 should ease the downward pressure, albeit an advance beyond 1.3910 is required to confirm a new leg up towards 1.3960 price zone.”
Key Quotes
“The consolidative stage that extended through Monday turned into a bearish corrective movement, albeit limited so far, as price stands well above the 1.3800 figure immediate support.”
“Early data shown German Trade surplus shrank below expected while ECB is showing its first signs of concern over overvalued EUR, with ECB’s Constancio stating that the Central Bank can “still cut rates and implement QE or buy assets.””
“However, I believe it would take more than talking to drag the pair down. Nevertheless the 4 hours chart shows price right below its 20 SMA as indicators continue to correct overbought readings, reaching their midlines and momentum turning flat right around it. A price acceleration below 1.3810 may lead to a test of 1.3770 strong static support area, while if below, the slide may extend down to 1.3730 area, base of the daily ascendant channel.”
“On the other hand, a recovery above 1.3850 should ease the downward pressure, albeit an advance beyond 1.3910 is required to confirm a new leg up towards 1.3960 price zone.”