EUR/USD sees some short term relief – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that Euro saw a short term bounce after falling below the 1.19 handle, but maintains the bearish tone.

Key Quotes

“The EUR/USD pair is seeing some short term relief, after falling below the 1.1900 ahead of US opening. The dollar is easing against most rivals as stocks turned south, with American index about to open in the red.”

“Earlier on the day, German CPI turned out down, 0.0% monthly basis and 0.2% YoY, reinforcing the idea the ECB may act as soon as this month.”

“Technically, the pair however maintains a clear bearish tone, with the 1 hour chart showing the price limited to the upside by its 20 SMA currently around 1.1950, and indicators barely correcting extreme oversold levels.”

“In the 4 hours chart technical readings maintain a strong bearish momentum, despite RSI stands at 17, supporting further declines despite the weekly opening gap at 1.2002.”

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