9 Mar 2015
EUR/USD consolidates near multi-year lows
FXStreet (Córdoba) - EUR/USD failed to sustain intraday gains and pulled back to the 1.0840 zone at the beginning of the American session following a short-lived recovery attempt.
EUR/USD bounced off a fresh 11-year low of 1.0822 scored during the Asian session as investors took profit following Friday’s USD gains triggered by a stronger-than-expected nonfarm payrolls report. However, EUR/USD found resistance at the 1.0905 area and pulled back to settle around 1.0850.
The euro is expected to remain under pressure as the European Central Bank started its quantitative easing program on Monday. On the other hand, the dollar is expected to remain strong as NFP figures fueled speculations the Fed will start to hike rates sometime mid-year.
EUR/USD technical perspective
“In the 4 hours chart however, the bearish bias prevails, with the technical indicators losing upward strength after a limited correction of extreme oversold readings whilst the 20 SMA maintains a strong bearish slope well above the current price, all of which suggests the pair will remain under selling pressure”, said Valeria Bednarik, chief analyst at FXStreet.
As for technical levels, Bednarik locates immediate supports at 1.0840, 1.0805 and 1.0760, while she sees resistances at 1.0890, 1.0925 and 1.0960.
EUR/USD bounced off a fresh 11-year low of 1.0822 scored during the Asian session as investors took profit following Friday’s USD gains triggered by a stronger-than-expected nonfarm payrolls report. However, EUR/USD found resistance at the 1.0905 area and pulled back to settle around 1.0850.
The euro is expected to remain under pressure as the European Central Bank started its quantitative easing program on Monday. On the other hand, the dollar is expected to remain strong as NFP figures fueled speculations the Fed will start to hike rates sometime mid-year.
EUR/USD technical perspective
“In the 4 hours chart however, the bearish bias prevails, with the technical indicators losing upward strength after a limited correction of extreme oversold readings whilst the 20 SMA maintains a strong bearish slope well above the current price, all of which suggests the pair will remain under selling pressure”, said Valeria Bednarik, chief analyst at FXStreet.
As for technical levels, Bednarik locates immediate supports at 1.0840, 1.0805 and 1.0760, while she sees resistances at 1.0890, 1.0925 and 1.0960.