5 Mar 2015
EUR/USD: RSI on 4hr in oversold territory - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair sunk to levels not seen since September 2009 overnight, reaching a daily low of 1.1061 before halting the slide.
Key Quotes:
"The pair has been under pressure ever since early in the European session, triggering stops before the release of the European Markit Services PMIs, all of which missed expectations, fueling the decline in the common currency."
"The EZ Retail Sales resulted up beating, soaring 1.1% in January, whilst in the US, the ADP private survey anticipated the country may have created around 212K new jobs last month, slightly below the 220K expected."
"But the dollar strength, and the overall markets' behavior, had little to do with fundamentals this Wednesday, and all about upcoming ECB meeting and the release of details about the QE program the area will launch this month. Stocks retreated across the world after flirting with record highs during the lasts sessions, as investors locked profits ahead of the critical event."
"Anyway and from a technical point of view, the 1 hour chart for the pair shows that the price accelerated further below its 20 SMA, whilst the Momentum indicator hovers deep in negative territory and the RSI heads lower at extreme oversold levels, currently at 23."
"In the 4 hours chart the Momentum indicator presents a sharp bearish slope below 100 whilst the 20 SMA caps the upside around 1.1160, should the price regain the upside, whilst the RSI also stands in oversold territory. Despite the extreme readings, the price consolidates below the 1.1100 figure, which reflects the strong selling interest around the pair."
Key Quotes:
"The pair has been under pressure ever since early in the European session, triggering stops before the release of the European Markit Services PMIs, all of which missed expectations, fueling the decline in the common currency."
"The EZ Retail Sales resulted up beating, soaring 1.1% in January, whilst in the US, the ADP private survey anticipated the country may have created around 212K new jobs last month, slightly below the 220K expected."
"But the dollar strength, and the overall markets' behavior, had little to do with fundamentals this Wednesday, and all about upcoming ECB meeting and the release of details about the QE program the area will launch this month. Stocks retreated across the world after flirting with record highs during the lasts sessions, as investors locked profits ahead of the critical event."
"Anyway and from a technical point of view, the 1 hour chart for the pair shows that the price accelerated further below its 20 SMA, whilst the Momentum indicator hovers deep in negative territory and the RSI heads lower at extreme oversold levels, currently at 23."
"In the 4 hours chart the Momentum indicator presents a sharp bearish slope below 100 whilst the 20 SMA caps the upside around 1.1160, should the price regain the upside, whilst the RSI also stands in oversold territory. Despite the extreme readings, the price consolidates below the 1.1100 figure, which reflects the strong selling interest around the pair."