2 Jun 2014
EUR downward potential intact- FXStreet
FXStreet (London) - Valeria Bednarik, FXStreet Chief Analyst comments that the EUR sees another round of selling after the release of local PMI Manufacturing readings, reflecting that factory output slowed more than expected last month across the euro zone.
Key Quotes
“France reading was the only one that ticked up, yet also the one standing below 50, the line between expansion and contraction. The EUR/USD broke below the 1.3600 figure following the news, posting fresh daily lows near 1.3590.”
“Technically, the 4 hours chart shows risk remains to the downside as the pair lost in a couple hours the ground recovered in two days. Despite accelerating below a bearish 20 SMA, indicators stand right above their midlines presenting a more neutral technical stance. Immediate support remains at 1.3570, and once below the slide can extend towards 1.3520/30 price zone.”
“Further falls are not yet seen, not because of the trend, but considering EU CPI, GDP and ECB meeting will come out this week: market will remain a bit more cautious ahead of them but beware positive readings among the first two should do little to boost price as the Central Bank will have the final word.”
“Resistance stands at 1.3630/40, 200 DMA, with price unable to break above it for the last 4 days. If above, next level to watch is 1.3680, 61.8% retracement of this year rally.”
Key Quotes
“France reading was the only one that ticked up, yet also the one standing below 50, the line between expansion and contraction. The EUR/USD broke below the 1.3600 figure following the news, posting fresh daily lows near 1.3590.”
“Technically, the 4 hours chart shows risk remains to the downside as the pair lost in a couple hours the ground recovered in two days. Despite accelerating below a bearish 20 SMA, indicators stand right above their midlines presenting a more neutral technical stance. Immediate support remains at 1.3570, and once below the slide can extend towards 1.3520/30 price zone.”
“Further falls are not yet seen, not because of the trend, but considering EU CPI, GDP and ECB meeting will come out this week: market will remain a bit more cautious ahead of them but beware positive readings among the first two should do little to boost price as the Central Bank will have the final word.”
“Resistance stands at 1.3630/40, 200 DMA, with price unable to break above it for the last 4 days. If above, next level to watch is 1.3680, 61.8% retracement of this year rally.”