25 Jun 2014
EUR/USD rally falters at 1.3650
FXStreet (Córdoba) - The EUR/USD lost momentum and stabilized after rallying to a fresh 2-week highs on the back of much-worse-than-expected US GDP revision.
The US economy contracted by 2.9% in Q1 2014, marking the biggest decline in 5 years. GDP numbers ignited a USD sell-off and sent EUR/USD to a high of 1.3650. With the subsequent pullback being contained by 1.3630, the pair was confined to a phase of consolidation in a tight range. At time of writing, the EUR/USD is trading at 1.3638, recording a 0.25% gain on the day.
EUR/USD technical oulook
“Having reached the critical resistance area, the pair consolidates its gains above former weekly high of 1.3627, with the hourly chart showing a strong upward momentum coming from indicators and price finally moving away from its moving averages, both 20 and 100 ones both around 1.3610”, said Valeria Bednarik, chief analyst at FXStreet. “Acceleration above 1.3650 is required to confirm a new leg up, eyeing 1.3680, 61.8% retracement of this year rally”.
In terms of technical levels, Bednarik locates next resistances at 1.3650, 1.3680 and 1.3720, while she locates supports at 1.3615, 1.3575 and 1.3550.
The US economy contracted by 2.9% in Q1 2014, marking the biggest decline in 5 years. GDP numbers ignited a USD sell-off and sent EUR/USD to a high of 1.3650. With the subsequent pullback being contained by 1.3630, the pair was confined to a phase of consolidation in a tight range. At time of writing, the EUR/USD is trading at 1.3638, recording a 0.25% gain on the day.
EUR/USD technical oulook
“Having reached the critical resistance area, the pair consolidates its gains above former weekly high of 1.3627, with the hourly chart showing a strong upward momentum coming from indicators and price finally moving away from its moving averages, both 20 and 100 ones both around 1.3610”, said Valeria Bednarik, chief analyst at FXStreet. “Acceleration above 1.3650 is required to confirm a new leg up, eyeing 1.3680, 61.8% retracement of this year rally”.
In terms of technical levels, Bednarik locates next resistances at 1.3650, 1.3680 and 1.3720, while she locates supports at 1.3615, 1.3575 and 1.3550.