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4 Aug 2014
EUR/USD: Long road ahead before confirming upward continuation - FXStreet
FXStreet (Bali) - Valeria Bednarik, Chief Analyst at FXStreet, notes that despite the EUR/USD bounce from last Friday, the shared-currency seems to have a long road ahead before confirming an upward continuation.
Key Quotes
"The greenback opens the day with a weak tone across the board, following the disappointment of NFP last Friday: the US economy created 290K new jobs in July below market expectations, while unemployment rate ticked higher to 6.2%."
"The EUR/USD however, seems to have a long road ahead before confirming an upward continuation, considering that the latest upward correction from its year low of 1.3366, is still unable to extend above the 23.6% retracement of the 1.3639/1.3366 slide around current levels. Furthermore, sellers had been surging on the 1.3440 price zone earlier past week, so some follow through above it is required to start thinking about buying."
"Technically, the hourly chart shows indicators aiming higher near overbought levels, while 200 SMA converges with the mentioned Fibonacci retracement reinforcing its strength. In the 4 hours chart indicators present a strong upward momentum, yet a break above mentioned resistance is required to confirm further intraday advances. A break below 1.3405 on the other hand, will likely see price resuming the downside, looking for fresh lows in the 1.3330/40 price zone."
Key Quotes
"The greenback opens the day with a weak tone across the board, following the disappointment of NFP last Friday: the US economy created 290K new jobs in July below market expectations, while unemployment rate ticked higher to 6.2%."
"The EUR/USD however, seems to have a long road ahead before confirming an upward continuation, considering that the latest upward correction from its year low of 1.3366, is still unable to extend above the 23.6% retracement of the 1.3639/1.3366 slide around current levels. Furthermore, sellers had been surging on the 1.3440 price zone earlier past week, so some follow through above it is required to start thinking about buying."
"Technically, the hourly chart shows indicators aiming higher near overbought levels, while 200 SMA converges with the mentioned Fibonacci retracement reinforcing its strength. In the 4 hours chart indicators present a strong upward momentum, yet a break above mentioned resistance is required to confirm further intraday advances. A break below 1.3405 on the other hand, will likely see price resuming the downside, looking for fresh lows in the 1.3330/40 price zone."