EUR/USD ST overbought and just under critical 1.3414 resistance

FXstreet.com (Barcelona) - The EUR/USD enters slow news day Friday with only a little room before key “correction resistance” is tested after stunning 5-week rally.

More of the same upside from the EUR/USD Thursday

No news Friday may allow the EUR/USD bulls to take the cross up for a test of “line in the sand” correction resistance at 1.3414. Given how short-term overbought the EUR/USD is currently, we may see profit-takers depleting some of the recent buying energy we have seen in the cross once the upside target is tested.

Technical outlook for EUR/USD

Technicians point to the 1.3414 resistance as the key level to watch for EUR/USD. Above that, the next level of projected resistance will be 1.3569. Unless 1.3414 is conquered, though, technicians say this is a rally to be sold. Short-term support comes in at the 7/31 peak at 1.3344.

Asian share markets mixed ahead of China CPI

With China mainland still closed, and only 30 minutes from the open and China CPI figures, open local share markets are trading mixed, with Nikkei index paring some of the loses from yesterday, up about +0.5% holding above the 13600 points mark.
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