EUR/USD Finally Breaks the 1.1200 Barrier
The American dollar advanced sharply for a second day in-a-row, erasing all of its post-FED’s losses, and with the EUR/USD ending the day a handful of pips below the 1.1200 figure, for the first time in over two weeks.
The Euro/Dollar pair set a daily low at 1.1180, finding short term selling interest on recoveries towards the 1.1210/20 region.
Closing the day near the mentioned low, the short term picture supports additional declines for the upcoming hours, as in the 1 hour chart, the 20 SMA heads sharply lower after breaking below its 100 and 200 SMAs, whilst the technical indicators consolidate in oversold territory, with no signs of changing bias.
In the 4 hours chart, and early attempt to advance was contained by the 20 SMA, in the 1.1330 region, whilst the technical indicators have lost their downward strength, but remain below their mid-lines, also far from suggesting an up-turn. Should the price extend beyond 1.1160, the bearish momentum will likely accelerate, eyeing then 1.1050 as the next probable bearish target for the upcoming sessions.
Meanwhile FED officers hit the wires, most claiming the Central Bank was really close to raise its benchmark last week, which opened doors for a probable move during the upcoming meetings. US data did not supported the greenback, as US Existing Home sales fell 4.8% in August, after three straight months of gains, although the dollar maintained it positive tone for most of the last two sessions.