Can EUR/USD Rebound From the 7-Month Low?
The imbalance between Central Banks continues weighting over the EUR/USD, as the pair closed the week near a fresh 7-month low of 1.0616 established this past Wednesday.
The minutes of the meeting of the ECB and the FED showed that whilst the first repeated the December QE extension´s rhetoric, FED officers continued to hint a possible rate hike in December, keeping the greenback strong, particularly against its European rivals.
The pair has shown little intraday volatility during the last two weeks, but that has resulted in a correction of the extreme oversold conditions reached lately, rather than a signal downward exhaustion. Technically, the daily chart shows that that the price remains well below a sharply bearish 20 SMA, whilst the Momentum indicator has turned flat well below its 100 level after correcting oversold readings, whilst the RSI indicator is resuming its decline around 32.
In the 4 hours chart, the pair presents a neutral-to-bearish stance, given that the price has been hovering back and forth around a horizontal 20 SMA, while the technical indicators present tepid bearish slopes around their mid-lines.