22 Jul 2015
EUR/USD: Bearish technically - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD came under selling pressure on Wednesday, ending the day around the 1.0900 level, after failing to advance beyond the 1.0960 region earlier in the day.
Key Quotes:
"Once again, there was little going on in Europe, besides the ECB rising the ELA ceiling to Greece by €900 million, to a total now of €90.4 billion. This is the second time that the ECB rises it in less than a week. Also, the Greek Parliament is voting for a second set of legislation, a requirement to access the third bailout package agreed earlier this month. In the US however, sales of existing homes climbed to an eight-year high in June, up 3.2% to a 5.49 million annualized rate, the most since February 2007, according to official data. The American dollar got a boost after the release, and the EUR/USD pair dropped down to its daily low of 1.0868, from where it slowly ground higher during the rest of the American session."
"Technically, however, the short term picture continues to favor the downside, as the 1 hour chart shows that the price extended below a now bearish 20 SMA, after failing to break above the 200 SMA, whilst the technical indicators maintain their bearish slopes below their mid-lines."
"In the 4 hours chart, the pair bounced from a mild bullish 20 SMA, whilst the technical indicators regaining the upside after approaching their mid-lines, limiting chances of a stronger decline as long as buyers continue to surge in the 1.0850/60 region."
Key Quotes:
"Once again, there was little going on in Europe, besides the ECB rising the ELA ceiling to Greece by €900 million, to a total now of €90.4 billion. This is the second time that the ECB rises it in less than a week. Also, the Greek Parliament is voting for a second set of legislation, a requirement to access the third bailout package agreed earlier this month. In the US however, sales of existing homes climbed to an eight-year high in June, up 3.2% to a 5.49 million annualized rate, the most since February 2007, according to official data. The American dollar got a boost after the release, and the EUR/USD pair dropped down to its daily low of 1.0868, from where it slowly ground higher during the rest of the American session."
"Technically, however, the short term picture continues to favor the downside, as the 1 hour chart shows that the price extended below a now bearish 20 SMA, after failing to break above the 200 SMA, whilst the technical indicators maintain their bearish slopes below their mid-lines."
"In the 4 hours chart, the pair bounced from a mild bullish 20 SMA, whilst the technical indicators regaining the upside after approaching their mid-lines, limiting chances of a stronger decline as long as buyers continue to surge in the 1.0850/60 region."