EUR/USD ends week unchanged, finds support above 2015 lows
- November 26, 2016
- Posted by: HumbleTraders
- Category: Market wraps
After falling more than 200 pips during two consecutive weeks, EUR/USD managed to stabilize and it was about to end the week around 1.0600, marginally higher from the levels it had a seven days ago.
The decline found support above 2015 lows that lie at 1.0460. The pair bottomed at 1.0516 (fresh 2016 low) and bounced to the upside on Friday, amid a correction of the US dollar in the currency market.
“The euro’s gains were more modest as the market expects the European Central Bank to extend/increase its quantitative program soon. We expect at least a period of consolidation, if not of correction, as the dollar rally is running out of steam”, said Arnaud Masset, head of market strategy at Swissquote Bank.
According to Valeria Bednarik, Chief Analyst at FXStreet the daily chart for shows that technical indicators have turned higher after spending the last two weeks in extreme oversold territory, yet at the same time, they remain far below their mid-lines. “The 20 DMA has extended its slide further above the current level, now around 1.0790, while the price has been unable to correct much, as its midway to the 23.6% retracement of its latest daily decline, at 1.0710, the immediate resistance for this upcoming days.”
She sees the pair with more room to rise if it climbs above 1.0710, with a possible target at up to 1.0820/40. To the downside, “below 1.0505, December 2015 monthly low, the next logical target is 1.0460, 2015 low, while below this last, the sell-off will likely accelerate, driving the price closer to the 1.0200 figure”, concluded Bednarik.
Source: Fx News
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