EUR/USD had a positive opening in yesterday’s trading sessions but was unable to sustain at higher levels and closed near the lows of the day. This price action is indicative of the fact that bears seem to be in total control at the current moment. The breakdown below levels of $1.348 a couple of weeks ago has proved to be a catalyst for the momentum to shift directly into the hands of the bears. The level at $1.32209 which is the lower Bollinger band support seems to be the last hope of support for the bulls and if the bears are able to break below this level on the back of good volumes, EUR/USD can easily slide to levels to $1.3189 in the very near term.
The stochastic oscillator for the currency pair is showing no buying support and makes us believe that the bears will make one last dash to breach through the support level at $1.32209 in the coming days. The EUR/USD has been in a very strong downtrend over the last many months post the escalation of tensions in Ukraine coupled along with the dismal economic reports out of Germany and fears of an economic meltdown in peripheral economies like Portugal.
The currency pair of the EUR/USD rose in the earlier half of the US session post the Q2 US retail sales number saw some selling pressure return in later half of the session as the bulls were unable to take EUR/USD above the 20-Day EMA which is the next level of resistance for the currency pair. (Currently stands at $1.34169). Traders would also be closely monitoring the developments in Russia to gauge the future direction for the currency pair in the coming trading sessions as any further escalation can lead the EUR/USD lower.