Falling Back to Trade

FXstreet.com (Barcelona) – After rising 115 pips during the European session from 2-week low at 1.4560, to test 55MA 55 level in hourly chart at 1.4675, EUR/USD has falling back to trade below 1.4650. Currently the pair is trading around 1.4635/45, 0.45% below today's opening price action at 1.4704.Valeria Bednarik, FXstreet.com collaborator, comments: “Pair remains under pressure, following lower stocks yet range bound; as expected on previous update, 1.4550 area seems strong enough to keep capping the downside and only clear confirmations under that level could trigger a more interesting downside corrective movement. Hourly indicators are slightly bullish, even 20 SMA yet with no clear signals at this point. Bigger time frames show the same picture; watch for technical levels and stocks, the main Euro driver today.

Pair remains under pressure, following lower stocks yet range bound; as expected on previous update, 1.4550 area seems strong enough to keep capping the downside and only clear confirmations under that level could trigger a more interesting downside corrective movement. Hourly indicators are slightly bullish, even 20 SMA yet with no clear signals at this point. Bigger time frames show the same picture; watch for technical levels and stocks, the main euro driver today.

Not much change also since previous update, Pound remains under strong selling pressure, and already corrected to the 1.5900 area, from where the pair retreat to current zone. Capped by 20 SMA in the hourly and with 4 hours indicators suggesting further falls, watch for the pair to break under key 1.5754 low to extend the downside rally.

Pair remains holding above 89.00 area, as Asian session low has been more a fundamental reaction than a technical movement. Hourly charts seem slightly bullish as well as 4 hours ones, pointing for an upside correction ahead. General trend remain strongly bearish as long as under 90.00.