EUR/USD 100/200 DMA crossing is key

By FXstreet.com | August 12, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3357, down -0.20% on the day, having posted a daily high at 1.3387 and low at 1.3336.

There are a number of elements to the euros decline as it flirt with yearly lows. The latest was Germany’s ZEW, 8.6 vs 18.2 expected, that confirmed a weakening economy in Germany and the Eurozone. We are in hourly neutral conditions but looking to a daily chart, we see that RSI is also giving us room to the downside, reading 35.61. Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the EUR/USD short‐technicals are bearish and highlights key signals. “However the charts are warning of a lack of downside momentum; accordingly unless there is a close below last week’s low of 1.3333 the near‐term outlook is somewhat mixed. For longer‐term players, yesterday’s crossing of the 100‐day MA below the 200‐day is an important bearish signal (see chart), particularly when looked at in the context of history."

EUR/USD Levels

With spot trading at 1.3358, we can see next resistance ahead at 1.3359 (Daily Classic S2) and 1.3363 (Hourly 20 EMA). Support below can be found at 1.3349 (Weekly Classic S1), 1.3339 (Daily Classic S3), 1.3336 (Daily Low), 1.3290 (Weekly Classic S2) and 1.3247 (Weekly Classic S3).

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