EUR/USD losing charm – FXStreet

FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, the EUR/USD pair is losing its charm as quiet oil and recovering stocks keep the pair near its daily low of 1.2454.

Key Quotes

“The EUR/USD pair trades near its daily low of 1.2454 down on the day as oil remains quiet and stocks are in recovery mode.”

“Market players are waiting for the last FED meeting of the year later in the US afternoon, and expectations are of a change in the wording, with the Central Bank losing the “considerable time” when it comes to moving rates. If that’s the case, the greenback may extend its intraday recovery, but it not, the selloff in the American currency due to year-end profit taking, may take the EUR/USD to fresh monthly highs.”

“Technically, the 4 hours chart shows that price struggles around a bullish 20 SMA still, whilst indicators had extended their decline and rest around their midlines.”

“Further declines below the 1.2440 price zone should favor the downside towards the 1.2400 area first and if the slide extends, towards 1.2360.”

“The immediate short term resistance stands at 1.2490, with a break above exposing the pair to a test of 1.2530, followed later by 1.2570 yesterday’s high.”

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