21 Jul 2015
Greenback hit hard, 1.0960 key resistance - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that after failing to extend its rally, the American dollar got smashed in the New York session, giving back much of the ground gained last week.
Key Quotes:
"The day started in slow motion, with no relevant data released in Europe or the US, and in fact, the EUR/USD extended its decline down to 1.0808, a fresh 3-month low."
"But the lack of follow through finally played against dollar's bulls, forced to take profits out and wait for better levels before getting back in."
"The catalyst behind the slide was a revision of the US industrial sector, much softer than initially estimated over the past three years, putting a break on hopes the FED can begin tightening as soon as next month."
"The EUR/USD pair advanced up to 1.0968 before finally finding some selling interest. Technically, the 1 hour chart shows that the sharp advance stalled around the pair's 200 SMA, whilst the 20 SMA heads higher below the current level, and that the technical indicators are beginning to turn lower in overbought territory."
"In the 4 hours chart, the price has advanced strongly above its 20 SMA whilst the Momentum indicator continues to head sharply higher above the 100 level, and the RSI hovers around 59, all of which supports additional advances, should the price extend beyond the 1.0960 region."
Key Quotes:
"The day started in slow motion, with no relevant data released in Europe or the US, and in fact, the EUR/USD extended its decline down to 1.0808, a fresh 3-month low."
"But the lack of follow through finally played against dollar's bulls, forced to take profits out and wait for better levels before getting back in."
"The catalyst behind the slide was a revision of the US industrial sector, much softer than initially estimated over the past three years, putting a break on hopes the FED can begin tightening as soon as next month."
"The EUR/USD pair advanced up to 1.0968 before finally finding some selling interest. Technically, the 1 hour chart shows that the sharp advance stalled around the pair's 200 SMA, whilst the 20 SMA heads higher below the current level, and that the technical indicators are beginning to turn lower in overbought territory."
"In the 4 hours chart, the price has advanced strongly above its 20 SMA whilst the Momentum indicator continues to head sharply higher above the 100 level, and the RSI hovers around 59, all of which supports additional advances, should the price extend beyond the 1.0960 region."