Technical Analysis for EUR/USD (Daily)
The USD edged higher Vs most of its peers Wednesday, exception made by commodity currencies (AUD, CAD, NZD), which held on to gains as Crude Oil prices rallying to fresh yearly highs.
The US EIA report surprised with a smaller-than-expected increase in Crude Oil stockpiles, and distillates fell well beyond expected.
The EUR/USD started the day with a positive tone, rallying to a fresh weekly high of 1.1387 before turning South in the US afternoon, more due to a continued improvement in risk sentiment than because of Bucks strength.
The focus is on the ECB monetary policy meeting Thursday, where Mario Draghi is expected to maintain the current policy on hold, but with no doubts will offer enough rhetoric to shake the EUR.
The latest pullback in EUR/USD´s price has sent the pair below the 23.6% Fibo retracement of the latest daily Bullish run.
The 4 hours shows that the price has broken below its 20Day SMA, as the technical indicators head due South, and have entered negative territory, suggesting the decline may extend further.
The single currency has immediate support in the 1.1270/80 zone, followed by 1.1220, the 38.2% Fibo retracement of the rally. EUR/USD has a chance to break below this, on Mr. Draghi’s comments, and will probably mean a Southward continuation towards the 1.1120/60 zone.
Support marks:1.1275 1.1220 1.1160
Resistance marks: 1.1350 1.1390 1.1420
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