EUR/USD breaking down on clear bearish momentum - FXStreet

By FXstreet.com | July 16, 2014 AAA

FXStreet (Guatemala) - Val Bednarik, Chief analyst at FXStreet explained that the EUR/USD has extended its decline on Wednesday, breaking through 1.3535 short term support early US session.



Key Quotes:



“Despite market sentiment has flipped from Tuesday pessimism to strong gains in European indexes and fresh record highs for DJIA in the US, EUR couldn’t find its foot. From the data front EU Trade Balance missed expectations, albeit US numbers were neither encouraging, with Industrial numbers also missing expectations as well as TICS”.



“The pair is biased lower, with the hourly chart showing momentum heading south, RSI hovering below 30 and 20 SMA with a strong bearish slope above current price”.



“In the 4 hours chart the bearish momentum is even clearer, and despite an upward correction can’t be ruled out, the downside remains favored: below 1.3500 figure, this year low stands as critical support as once below more stops should be triggered. Recoveries on the other hand, had little in the way up to 1.3570 where selling interest awaits”.



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