EUR/USD stuck below $1.3400

January 23, 2013

EUR/USD has been quite volatile yesterday: the pair was trading in the $1.3265/3370 range. Euro has twice tested the levels below $1.3300, but returned back. Today the pair is trading on a downside and once again testing $1.3300.

In a long-term we still stay bullish, but for now the technical picture shows there is some room for downward correction. Euro is now trading very close to an 11-month high of $1.3405. Let’s have a look on a weekly chart: the pair is struggling to overcome the 200-week EMA ($1.3345) and fix above the weekly Ichimoku Cloud ($1.3300). On a monthly chart growth is contained by the 50-month EMA ($1.3370). The pair is trading at the lower boundary of the strongly negative monthly Ichimoku.

Investors remain indecisive ahead of these resistance levels even despite the improving risk sentiment and evident progress in euro zone. It seems that they need some time to prepare psychologically for a break of $1.3400. EUR/USD could extend the downside to the $1.3200 support or even to $1.3150. We would expect euro to bounce from there and to resume growth. We have already seen a similar scenario in late December 2012. The next upside targets are seen at $1.3400, $1.3480 and $1.3500.

Publication source
FBS information  FBS reviews

December 9, 2016
Coeure - ECB ready to do more
ECB board member Benoit Coeure commented the yesterday decision in a radio interview. The central bank announced QE tapering stressing that it does not mean less engagement...
December 8, 2016
Tapering and extending
The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB...
December 7, 2016
Oil ma pull back to $40
The oil price fell for the first time in 4 days today as skepticism creeped in over some OPEC member’s commitment to keep to their end of the deal and cut production...

Tickmill Rating
HYCM Rating
OANDA Rating
Larson&Holz IT Ltd Rating
FIBO Group Rating
FxPro Rating

OptionsXO Rating
Anyoption Rating
TropicalTrade Rating
TopOption Rating
EZTrader Rating
Porter Finance Rating