EUR/USD bulls are grasping at the straw

By FXstreet.com | August 06, 2014 AAA

FXStreet (Moscow) - EUR/USD staged a good recovery from Wednesday’s low of 1.3332 ()currently the pair is trading at 1.3388), but longer-term perspectives leave much to be desired as long as the pair trades below 1.3400.

EUR is on the verge of the abyss

EUR/USD weekly picture is depressing, moreover, the single currency has a good chance to continue the downside both on a longer term and on a shorter term scale. Markets are driven by rate differentials now, thus EUR is behind the eight ball. ECB meeting scheduled on Thursday will hardly change anything as the European central bank is on the verge of launching a sort of QE program, while FED and BOE are moving in the opposite direction. The closest bearish aim is now set at 1.3325/20 (option barrier coupled with a host of strong bids and stops). That’s where new buyers might emerge to trigger a short-term correction.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3368, with support below at 1.3347, 1.3312 and 1.3291, with resistance above at 1.3403, 1.3424, and 1.3459. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.3404 and the daily 20EMA bearish at 1.3466. Hourly RSI is bullish at 58.

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