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2 Mar 2016
EUR/USD trims daily losses
The dollar traded generally higher during the first half of the day, and even got a boost from the ADP employment survey, showing that the private sector added 214K new jobs during February and confirming continued strength in the jobs market. But the limited momentum of the American currency faded after Wall Street kicked in, with the currency poised to end the day on the red against all of its major rivals, but the EUR.
The common currency continues to be pressured by speculation the ECB will add some sort of easing measure at next week’s meeting. EUR/USD closes Wednesday with a lower low, and a lower high, for third day in-a-row. The pair is currently trading at 1.0850, still a few pips below its opening price.
EUR/USD technical perspective
“As for the technical picture, the intraday advance was not enough to reverse the dominant bearish trend, albeit the price has bounced after approaching the key support area at 1.0800/10. The 1 hour chart shows that the price continues developing below its 20 SMA, while the technical indicators have turned flat below their mid-lines after bouncing from oversold levels, reflecting the absence of buying interest,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have also bounced from oversold readings, but remain well below their mid-lines, while the 20 SMA caps the upside in the 1.0880/90 region, where the pair also presents multiple intraday highs from earlier this week, and the level to break to see the bearish pressure easing.”
Support levels: 1.0810 1.0770 1.0730. Resistance levels: 1.0890 1.0925 1.0960.
The common currency continues to be pressured by speculation the ECB will add some sort of easing measure at next week’s meeting. EUR/USD closes Wednesday with a lower low, and a lower high, for third day in-a-row. The pair is currently trading at 1.0850, still a few pips below its opening price.
EUR/USD technical perspective
“As for the technical picture, the intraday advance was not enough to reverse the dominant bearish trend, albeit the price has bounced after approaching the key support area at 1.0800/10. The 1 hour chart shows that the price continues developing below its 20 SMA, while the technical indicators have turned flat below their mid-lines after bouncing from oversold levels, reflecting the absence of buying interest,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have also bounced from oversold readings, but remain well below their mid-lines, while the 20 SMA caps the upside in the 1.0880/90 region, where the pair also presents multiple intraday highs from earlier this week, and the level to break to see the bearish pressure easing.”
Support levels: 1.0810 1.0770 1.0730. Resistance levels: 1.0890 1.0925 1.0960.