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9 Feb 2015
EUR/USD:Techs support further declines - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, notes that technicals in EUR/USD support further declines.
Key Quotes
"The American dollar staged a strong comeback on Friday, after being under pressure for most of the week. A strong job report, showing the US economy added 257K new jobs last January while November and December readings were revised to the upside, was behind Friday's recovery."
"The EUR has been also weighted by the ECB's decision to stop accepting Greek bonds as collateral, and the troubled country will likely remain on focus this week."
"In the meantime, the COT report shows EUR net shorts rose to 196K last week, the second-largest EUR short position on record, which may slow the downward continuation, but does not signal a near term bottom just yet."
"From a technical point of view, the 4 hours chart shows that the pair retraced on Friday, the 50% of its weekly rally, stalling at the 1.1300/10 price zone, also a strong static support. In the same chart, the price stands below its 20 SMA currently in the 1.1440 price zone, whilst indicators stand in negative territory, all of which support further declines. The pair has been finding short term buyers these last two weeks in the 1.1250/80 region, meaning it will take an extension below it to trigger stops and boosted the decline."
Key Quotes
"The American dollar staged a strong comeback on Friday, after being under pressure for most of the week. A strong job report, showing the US economy added 257K new jobs last January while November and December readings were revised to the upside, was behind Friday's recovery."
"The EUR has been also weighted by the ECB's decision to stop accepting Greek bonds as collateral, and the troubled country will likely remain on focus this week."
"In the meantime, the COT report shows EUR net shorts rose to 196K last week, the second-largest EUR short position on record, which may slow the downward continuation, but does not signal a near term bottom just yet."
"From a technical point of view, the 4 hours chart shows that the pair retraced on Friday, the 50% of its weekly rally, stalling at the 1.1300/10 price zone, also a strong static support. In the same chart, the price stands below its 20 SMA currently in the 1.1440 price zone, whilst indicators stand in negative territory, all of which support further declines. The pair has been finding short term buyers these last two weeks in the 1.1250/80 region, meaning it will take an extension below it to trigger stops and boosted the decline."