EUR/USD: bears victory is in the bag!

By FXstreet.com | August 07, 2014 AAA

FXStreet (Moscow) - EUR/USD dipped to 1.3342 early in Asia, but managed to recover to 1.3360 ahead of European opening

Draghi crossed the t's

Just as it was expected ECB meeting did become a market catalyst for EUR. Though nothing actually changed in terms of either monetary policy or ECB statement, investors sniffed a smell of rot. Draghi did his best not to sound pessimistic, but, apparently he was not that convincing when talking about sanctions backlash. So let’s put it shortly, EUR is a sell affair across the board now. Thus EUR/USD is under pressure, though from the technical point of view an important monthly cloud base comes at 1.3338 now, thus a daily close below this level is needed to open up the way to the next bearish target of 1.3300/90. Though bears might be hesitant to drive the pair below 1.3340/30 support area before the weekend.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3364, with support below at 1.3335, 1.3306 and 1.3277, with resistance above at 1.3393, 1.3422, and 1.3451. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.3396 and the daily 20EMA bearish at 1.3456. Hourly RSI is bearish at 45.

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