EUR/USD on the daily charts has been in a strong downtrend right from the time it hit an intraday high of $1.39926. The currency pair has been finding resistance at levels of $1.3700 and encounters selling pressure whenever the EUR/USD moves towards that level. On the downside, the currency pair has broken all important support levels, the first one being $1.34341 which had acted as a support for a long period of time. EUR/USD currently trades above the long term support level at $1.33194. This support level would be closely looked at by investors and traders as any breach below this level would see the currency pair slide down to levels of $1.3200 in near term.
The stochastic oscillator for the currency pair has given a buy signal on the back of the price action the currency pair witnessed in Fridays’ trading session. Based on analysis, the currency pair would find resistance at levels of $1.34341 and only breach above this level would see the EUR/USD trade higher. The relative strength index has a flat trajectory and showing no signs of reversal at the current juncture.
On the weekly charts, the currency pair has broken below the all important support zone of $1.35954 which is a bearish sign and is in line with the overall bearish stance for the EUR/USD. The stochastic oscillator for the currency pair is in oversold area but is showing no signs of a reversal. Similar is the case with the relative strength index which is showing no signs of upward breakout, confirming to me that the momentum is clearly in the hands of the bears at the current moment.
Latest Buzz: Traders and investors would be closely looking at economic reports coming out of the Euro zone especially the German economic sentiment. Along with this, traders and investors would be closely looking at the any kind of developments in Russia-Ukraine.