FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik sees the EUR continuing to give up ground on Wednesday, after breaching the 1.3570 level yesterday.
"The European morning brought a weaker than expected Trade Balance result for the EU, and despite market mood is positive, with stocks recovering on news the Espirito Santo group shareholders are willing to inject more capital, the EUR remains under pressure."
"Technically, the 4 hours chart shows price nearing 1.3535 immediate short term support, with indicators heading strongly south near oversold levels."
"Price stands also well below moving averages, with 20 SMA gaining bearish slope, all of which supports a downward continuation: renewed selling interest below mentioned support should lead to a test of the 1.3500 figure, June post ECB meeting low, in route to 1.3476, this year one."
"To the upside, selling interest awaits at 1.3570/80 price zone, and only steady gains above this area will ease some of the bearish pressure, with next resistance at 1.3620."