4 Mar 2014
Flash: EUR/USD: risk on? Don't bet on it just yet – FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet notes that the EUR/USD presents a mild bullish tone and a break above 1.3770 is required to confirm more intraday gains towards 1.3820/30 price zone.
Key Quotes
"The EUR/USD bounced nicely from a daily low of 1.3720 early Europe, on news Putin was calling troops back from Crimea, triggering risk on rallies across the board that put the yen and the greenback in selling mode. But as hours go by, things are not that clear: news headlines had changed to 'Russian President Vladimir Putin recalled troops on military exercises from the Western borders'. There are also some talks of an upcoming statement, but so far markets have shrug off partially the need of safety seen early week".
"The EUR/USD initial spike extended up to 1.3772 where sellers jumped in to contain the advance: disregarding past Friday run above it, the level has acted as strong resistance level ever since the year started. Technically, the pair presents a mild bullish tone, as the 4 hours chart shows price above its 20 SMA which maintains a bullish slope, and indicators losing the downward potential and turning slightly higher round around their midlines, reflecting the downward movement is over for now, but not because of that diminishing risk of a break lower: currently struggling below the 38.2% retracement of its latest short term rally, an advance above mentioned 1.3770 area are required to confirm more intraday gains towards 1.3820/30 price zone".
"On the other hand failure to overcome mentioned resistance and renewed risk aversion on news may see the pair back down towards the daily low, albeit a break of 1.3710, 61.8% retracement of the same rally, should lead to a downward continuation, eyeing then past week low of 1.3640".
Key Quotes
"The EUR/USD bounced nicely from a daily low of 1.3720 early Europe, on news Putin was calling troops back from Crimea, triggering risk on rallies across the board that put the yen and the greenback in selling mode. But as hours go by, things are not that clear: news headlines had changed to 'Russian President Vladimir Putin recalled troops on military exercises from the Western borders'. There are also some talks of an upcoming statement, but so far markets have shrug off partially the need of safety seen early week".
"The EUR/USD initial spike extended up to 1.3772 where sellers jumped in to contain the advance: disregarding past Friday run above it, the level has acted as strong resistance level ever since the year started. Technically, the pair presents a mild bullish tone, as the 4 hours chart shows price above its 20 SMA which maintains a bullish slope, and indicators losing the downward potential and turning slightly higher round around their midlines, reflecting the downward movement is over for now, but not because of that diminishing risk of a break lower: currently struggling below the 38.2% retracement of its latest short term rally, an advance above mentioned 1.3770 area are required to confirm more intraday gains towards 1.3820/30 price zone".
"On the other hand failure to overcome mentioned resistance and renewed risk aversion on news may see the pair back down towards the daily low, albeit a break of 1.3710, 61.8% retracement of the same rally, should lead to a downward continuation, eyeing then past week low of 1.3640".