EUR/USD Mid-Session Technical Analysis for July 16, 2014 » Fx …

EUR/USD Mid-Session Technical Analysis for July 16, 2014 » Fx …

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Daily EUR/USD Technical Analysis

Daily EUR/USD

Yesterday’s close on the bearish side of a major retracement zone at 1.3606 to 1.3584 put the EUR/USD in a weak position to begin today’s session. This led to early selling pressure that drove the Forex pair through a major uptrending angle at 1.3572. This triggered an acceleration to the downside, generating enough downside momentum to challenge the June main bottoms at 1.3512 and 1.3502.

Last month, the major Euro players drew a line in the sand at 1.3502 shortly after the release of the European Central Bank’s stimulus plans. Traders decided at that time that they would give the ECB and Mario Draghi the benefit of the doubt and give the stimulus a chance to work. The consensus among traders was to wait for the next Euro Zone inflation report before deciding which way to take the Euro.

This line of thinking may have helped establish support for the Euro, but this week’s pressure is being triggered by the stronger dollar. Fed Chair Janet Yellen’s hawkish comments regarding the Fed’s next interest rate hike is creating the selling pressure. Strong U.S. economic data over the near-term may be able to overcome the “line in the sand” defense.

If the selling pressure continues to grow and the major players supporting the Euro decide to lift their bids then the EUR/USD may be trading in the mid-1.3400 range by early next week.

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EUR/USD Mid-Session Technical Analysis for July 16, 2014 » Fx …

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