EUR/USD Mid-Session Technical Analysis for August 5, 2014 » Fx …
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Daily EUR/USD Technical Analysis
Daily EUR/USD
The EUR/USD is under pressure at the mid-session. The main trend is down on the daily chart so the weakness isn’t a complete surprise.
Despite the solid one-day rally on Friday which was triggered by short-covering rather than new buying, the market has resumed its downtrend. Traders are pressing the Euro against the U.S. Dollar today after two U.S. economic reports came out stronger-than-expected.
In addition, short-sellers used Friday’s rally to reposition themselves in anticipation of further stimulus by the European Central Bank at this month’s rally on Thursday, August 7.
Technically, the nearest resistance is a pair of downtrending angles at 1.3450 and 1.3470. Although they weren’t actually touched by traders, there presence is exerting a bearish influence.
The short=term range is 1.3366 to 1.3444. The retracement zone created by this range at 1.3405 to 1.3396 was expected to hold as support today, but the selling pressure was too strong. This helped trigger today’s acceleration to the downside.
This zone is likely to become new resistance today. Support is last week’s low at 1.3366.
Hourly EUR/USD Technical Analysis
Hourly EUR/USD
The hourly chart indicates the EUR/USD is in a weak position at the mid-session. The main trend is up on the 60-minute chart, however, the market has crossed over to the weakside of a retracement zone.
The main range is 1.3366 to 1.3444. The retracement zone created by this range is 1.3405 to 1.3396. Yesterday and earlier today, the EUR/USD found support at the 50% level at 1.3405, but the breakout through this price level finally triggered a sharp acceleration to the downside after the release of the U.S. economic data.
The downside momentum through the 50% level at 1.3405 was strong enough to take out the Fibonacci level at 1.3396. A sustained move under this price is likely to lead to a test of 1.3366 into the close.
Intraday resistance comes in at 1.3396, followed by 1.3406.
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EUR/USD Mid-Session Technical Analysis for August 5, 2014 » Fx …
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