EUR/USD techncial analyses and ECB preview – FXStreet

By FXStreet FXStreet (Guatemala) – In a preview to the ECB, where Valeria Bednarik, chief analyst at FXStreet asked “Can the ECB bring the EUR back to life?” she offered a technical analyses as follows:

“From a technical point of view, the EUR/USD pair has been unable to establish a clear direction, after the long term bearish trend was interrupted by December’s ECB announcement. After rallying up to 1.1059, the pair entered in a corrective phase that sent price down to the 61.8% retracement of the latest rally, around 1.0710, from where the pair slowly grinded back higher. The former rallies repeatedly met selling interest around the 23.6% retracement of the same rally around 1.0925, with short lived spikes above it being quickly reverted.

True, Year End holidays did little to help the pair in establishing a certain trend, but January is about to end and the pair still lacks direction. In the daily chart, a slightly positive tone prevails, given that the price is consolidating above a flat 20 SMA and approaches to the 38.2% retracement of the mentioned rally, at 1.0790 that has continuously attracted buying interest. In the same chart the technical indicators aim slightly higher, but within neutral …read more

Source:: FX Street