9 Dec 2014
EUR/USD correction can extend up to 1.2400 – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that further fall in stocks may cause the EUR/USD pair to rally towards 1.2400 price zone.
Key Quotes
“Stocks down all over the world weight in dollar’s strength, adding to the short term bullish case for the pair. Nevertheless, the 4 hours chart is far from suggesting further upward strength as indicators remain below their midlines.”
“The price stands now above a flat 20 SMA offering short term support around 1.2320, whilst sellers clearly surged on a test of former lows in the 1.2360 price zone, overlapping short term buying interest.”
“The mood among investors could worsen if stocks continue to decline with some steady advance above the mentioned daily high favoring a rally towards the 1.2400 price zone. Above this last, 1.2440 area is next.”
“To the downside, a break below 1.2320, should increase the bearish pressure, exposing then the 1.2270 price zone as immediate bearish target.”
Key Quotes
“Stocks down all over the world weight in dollar’s strength, adding to the short term bullish case for the pair. Nevertheless, the 4 hours chart is far from suggesting further upward strength as indicators remain below their midlines.”
“The price stands now above a flat 20 SMA offering short term support around 1.2320, whilst sellers clearly surged on a test of former lows in the 1.2360 price zone, overlapping short term buying interest.”
“The mood among investors could worsen if stocks continue to decline with some steady advance above the mentioned daily high favoring a rally towards the 1.2400 price zone. Above this last, 1.2440 area is next.”
“To the downside, a break below 1.2320, should increase the bearish pressure, exposing then the 1.2270 price zone as immediate bearish target.”