FXStreet (Barcelona) - FXStreet Chief Analyst Valeria Bednarik suggests that even though the European calendar is light today, earlier remarks from Angela Merkel on the fragility of the recovery in the area and ECB policymakers' comments on the easing measures caused the euro to wake up from its lethargic range, breaking lower and reaching 1.3556.
“Nevertheless, the technical picture shows an increase in the bearish potential, with indicators finally detaching from their midlines and accelerating south, while the slide extends below moving averages. ”
“Pressuring daily lows, immediate short term support stands in the 1.3520/30 price zone, followed by 1.3476, this year low. Large stops should lay under it and if triggered, the selloff will likely extend over the upcoming days.”
“To the upside now, 1.3600 figure stands as immediate resistance, with a break above it pointing for a recovery up to 1.3640 price zone, albeit hardly seen at this point.”