20 Mar 2014
EUR/USD Breaking critical 1.3800 support - FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet noted that if the EUR/USD loses the 1.3770 area, the negative tone might deepen, leading the pair to the 1.3710/30.
Key Quotes
"The FED has taken its toll on the EUR/USD, making the pair tumble towards the base of the daily ascendant channel that lead price action since early February. The US Central Bank did mostly as expected, but the overall up beating assessment of the economic picture, and the possibility of rates hikes in a year had been enough to encourage dollar buyers".
"The EUR/USD remained capped below 1.3840 area over Asian hours, and accelerates lower early Europe, breaking through a critical support: the 1.3800 figure, also base of the channel as mentioned above, with the 4 hours chart showing indicators resuming the downside following a limited upward correction, and 20 SMA gaining bearish slope well above current price. Latest candle opened below the key level and remains below it, all of which supports more falls for today".
"Immediate support stands at 1.3770 former intraday highs and 200 EMA according to the chart: further slides below the level should imprint more strength to the negative tone and see price extending towards 1.3710/30 price zone".
"Back above 1.3810, the pair may attempt a recovery, but it will be only with steady gains above the 1.3850 figure, that it will be able to shrug off the bearish pressure".
Key Quotes
"The FED has taken its toll on the EUR/USD, making the pair tumble towards the base of the daily ascendant channel that lead price action since early February. The US Central Bank did mostly as expected, but the overall up beating assessment of the economic picture, and the possibility of rates hikes in a year had been enough to encourage dollar buyers".
"The EUR/USD remained capped below 1.3840 area over Asian hours, and accelerates lower early Europe, breaking through a critical support: the 1.3800 figure, also base of the channel as mentioned above, with the 4 hours chart showing indicators resuming the downside following a limited upward correction, and 20 SMA gaining bearish slope well above current price. Latest candle opened below the key level and remains below it, all of which supports more falls for today".
"Immediate support stands at 1.3770 former intraday highs and 200 EMA according to the chart: further slides below the level should imprint more strength to the negative tone and see price extending towards 1.3710/30 price zone".
"Back above 1.3810, the pair may attempt a recovery, but it will be only with steady gains above the 1.3850 figure, that it will be able to shrug off the bearish pressure".