EUR/USD: no clear directional clues for the short-term – FXStreet
By FXStreet FXStreet (Córdoba) – Valeria Bednarik, chief analyst at FXStreet notes technical indicators in short-term charts lack directional strength, giving no clear directional clues, following today’s slump and bounce on the back of the ECB rhetoric.
Key Quotes
“The EUR/USD pair fell down to 1.0770, but quickly bounced, meeting buying interest around the 50% retracement of the December rally, holding afterwards below 1.0845, the 38.2% retracement of the same rally.”
“But before Wall Street’s closing bell and as stocks pared gains, the pair approached pre-ECB levels, advancing up o 1.0900. Currently trading around 1.0880, the 1 hour chart shows that the price is now back around its moving averages, all within a 30 pips range and lacking directional strength, while the technical indicators present tepid bearish slopes around their mid-lines, back to neutral.”
“In the 4 hours chart, the technical indicators are also stuck around their mid-lines, while the moving averages are mostly horizontal and in a tight range, giving no clear directional clues. The 1.0800/1.1000 range prevailed, meaning that playing those extremes is still the way to go with the EUR/USD”.
Support levels: 10845 1.0800 1.0770. Resistance levels: 1.0890 1.0925 1.0965.
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Source:: FX Street
