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29 Jul 2015
EUR/USD: 1.1120 needs to give or else bearish - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD gave back some of its Monday's gains, falling down to 1.1021 before bouncing some on the back of weaker-than-expected US consumer confidence figures.
Key Quotes:
"The pair started the day with a weaker note, slipping through the first half of the day with no macroeconomic news coming from Europe. EU officers however, announced that a deal between Greece and its creditors could be clinched by the ends of August, whilst the ECB approved a Greek proposal of reopening the local stock market, although no further details have been revealed. In the US, the service sector has posted a slight rebound, as the Markit Flash services PMI printed 55.2 in July from the previous 54.8. The market entered wait-and-see mode during the American afternoon, as investors wait for the upcoming FOMC monetary policy decision next Wednesday."
"Technically, the 1 hour chart shows that the price has been unable to recover above its 20 SMA, whilst the technical indicators present a bearish tone, heading lower below their mid-lines."
"In the 4 hours chart, however, the upside remains constructive as the pair bounced from a bullish 20 SMA, whilst the technical indicators aim slightly higher above their mid-lines. Daily basis, the pair held above its 100 DMA, also keeping doors open for additional advances. Nevertheless at this point, the price needs to extend beyond the 1.1120 critical resistance level to be able to extend its weekly rally, which ultimately will depend on the US Central Bank."
Key Quotes:
"The pair started the day with a weaker note, slipping through the first half of the day with no macroeconomic news coming from Europe. EU officers however, announced that a deal between Greece and its creditors could be clinched by the ends of August, whilst the ECB approved a Greek proposal of reopening the local stock market, although no further details have been revealed. In the US, the service sector has posted a slight rebound, as the Markit Flash services PMI printed 55.2 in July from the previous 54.8. The market entered wait-and-see mode during the American afternoon, as investors wait for the upcoming FOMC monetary policy decision next Wednesday."
"Technically, the 1 hour chart shows that the price has been unable to recover above its 20 SMA, whilst the technical indicators present a bearish tone, heading lower below their mid-lines."
"In the 4 hours chart, however, the upside remains constructive as the pair bounced from a bullish 20 SMA, whilst the technical indicators aim slightly higher above their mid-lines. Daily basis, the pair held above its 100 DMA, also keeping doors open for additional advances. Nevertheless at this point, the price needs to extend beyond the 1.1120 critical resistance level to be able to extend its weekly rally, which ultimately will depend on the US Central Bank."