Euro Bears Eye 1.1080 In Short Term

The EUR/USD was a lager for most of the day, hitting 1.1228 early Europe before retreating down to 1.1160, where it consolidate for most of the American session. The pair, however, resumed its advance right before Wall Street’s closing bell, ending the day around 1.1210.

Technically, the short term picture has turned bearish for the pair, as the price stands below its 20 SMA in the 1 hour chart, whilst the technical indicators head slightly lower below their mid-lines. In the 4 hours chart, however, the pair presents a neutral-to-bullish stance, as it holds above a flat 20 SMA, whilst the Momentum indicator lacks directional strength around its mid-line, but the RSI indicators advances around 55.

The pair has a strong static support at 1.1120, also the weekly low, and it will take a break below it to confirm additional declines whilst some steady gains beyond 1.1235, should favor a bullish day for this Wednesday, eyeing an advance up to 1.1280, the 61.8% retracement of the latest weekly decline.

Meanwhile risk appetite took over financial markets as the Shanghai Composite advances 2.92%, sending European and American indexes into the green.

Earlier in the day, European data came out better-than-expected, as German July trade balance posted a surplus of €22.8B.

Exports rose by 2.4% in the same month, albeit June readings were revised down to -1.1%. Also, the EU GDP in the second quarter of the year rose by 0.4%, against expectations of a 0.3% advance. In the first quarter of 2015, GDP rose by 0.5% in the region.

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