18 Aug 2015
EUR/USD: 1.1010 critical support - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD fell down to a fresh low of 1.1016 this Tuesday, after failing to retake the 1.1100 figure earlier in the day.
Key Quotes:
"There were no fundamental releases in Europe, and the dollar suffered a knee-jerk at the session opening, but the common currency quickly faded the rally, to finally gave back after the release of US Housing Starts for July that climbed to the highest level in almost eight years. Building permits however, came out slightly below expected, but remain near multi-years highs, suggesting the US economy has started to pick pace in the second quarter of the year.
"The EUR/USD pair initially dropped to 1.1051, meeting some buying interest around the strong static level, but finally broke below it and extended its decline as stops got triggered."
"The pair entered in consolidate mode after reaching its low, and the 1 hour chart shows that the price is now unable to advance above the 50% retracement of its latest bullish run around 1.1030, whilst the 20 SMA has extended its decline above it, and the technical indicators remain dip in the red, supporting additional declines."
"In the 4 hours chart, the RSI indicator continues heading lower, despite being around 35, whilst the 20 SMA maintains a sharp bearish slope above the current level. Should the pair accelerate lower once again, a break below 1.1010 exposes the 1.0960 level in the short term, whilst sellers will maintain the lead as long as the price remains below the 1.1100 figure."
Key Quotes:
"There were no fundamental releases in Europe, and the dollar suffered a knee-jerk at the session opening, but the common currency quickly faded the rally, to finally gave back after the release of US Housing Starts for July that climbed to the highest level in almost eight years. Building permits however, came out slightly below expected, but remain near multi-years highs, suggesting the US economy has started to pick pace in the second quarter of the year.
"The EUR/USD pair initially dropped to 1.1051, meeting some buying interest around the strong static level, but finally broke below it and extended its decline as stops got triggered."
"The pair entered in consolidate mode after reaching its low, and the 1 hour chart shows that the price is now unable to advance above the 50% retracement of its latest bullish run around 1.1030, whilst the 20 SMA has extended its decline above it, and the technical indicators remain dip in the red, supporting additional declines."
"In the 4 hours chart, the RSI indicator continues heading lower, despite being around 35, whilst the 20 SMA maintains a sharp bearish slope above the current level. Should the pair accelerate lower once again, a break below 1.1010 exposes the 1.0960 level in the short term, whilst sellers will maintain the lead as long as the price remains below the 1.1100 figure."