6 May 2015
EUR/USD to correct lower? – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that EUR/USD might drop back to 1.1050 if German 10-year yield drops back to 0.40%, while a daily close above 1.1293 would see the pair re-testing 1.1380 and even 1.1440-1.1450 area.
Key Quotes
“The German 10-year yield has rallied more than 50 basis points since in just two weeks, and thus appears due for a correction. The yield could drop back to 0.40% from the current level of 0.568%, thereby pushing the EUR/USD pair back to 1.1050 as markets once again grapple with the Greece issue.”
“On the weekly charts, we see the pair currently trades above 1.1293 (23.6% Fib Retr of 1.3991-1.0461). On the daily chart, a daily close above 1.1293 could open doors for a re-test of 1.1380 and multiple resistance levels around 1.1440-1.1450. On the other hand, a failure to sustain above the same might send the pair lower to its 100-DMA at 1.1089.”
“On a 4-hour chart, there is a strong possibility of the pair forming bearish divergence with the RSI. On hourly as well as 4-hour chart, the RSI has hit the overbought region, which increases the probability of a correction in the pair.”
Key Quotes
“The German 10-year yield has rallied more than 50 basis points since in just two weeks, and thus appears due for a correction. The yield could drop back to 0.40% from the current level of 0.568%, thereby pushing the EUR/USD pair back to 1.1050 as markets once again grapple with the Greece issue.”
“On the weekly charts, we see the pair currently trades above 1.1293 (23.6% Fib Retr of 1.3991-1.0461). On the daily chart, a daily close above 1.1293 could open doors for a re-test of 1.1380 and multiple resistance levels around 1.1440-1.1450. On the other hand, a failure to sustain above the same might send the pair lower to its 100-DMA at 1.1089.”
“On a 4-hour chart, there is a strong possibility of the pair forming bearish divergence with the RSI. On hourly as well as 4-hour chart, the RSI has hit the overbought region, which increases the probability of a correction in the pair.”