FXStreet (Córdoba) – EUR/USD bottomed at 1.0897, the lowest level since the beginning of the week but quickly managed to rise back above 1.0900. It is about to end the day lower affected by a stronger US dollar against European currencies amid another low volume session; but away from the lows as it trades at 1.0935/40.
EUR/USD supported by the 20-day MA
The pair dropped quickly before Wall Street opening bell from 1.0970 and bottomed at 1.0898. The 1.0900 area contained the decline around 1.0895, the 20-day moving average currently stands. A daily close below this latter could change the bullish bias; while it remains above the upside would be limited as long as it fails to break the 1.1050 barrier, where December highs and the 100 and 200-day moving average are located.
According to Valeria Bednarik, Chief Analyst at FXStreet, the technical picture suggest a limited bearish scope at the time being, “given that in the 4 hours chart, the technical indicators have also reversed course and turned higher after briefly breaking below their mid-lines.”
She added that the decline stalled around the 38.2% retracement of the latest daily decline between 1.1059 and 1.0804, and now hovers around the 50% retracement of the same decline.
Modest price action
Today the pair moved in a range of almost a hundred pips, the biggest since December 21. Bednarik points out that trading will continue to remain reduced during Wednesday, with some second-line data scheduled both, in Europe and the US. Also the rest of the forex market is expected to show limited price variations.
(Market News Provided by FXstreet)