EUR/USD can't define intraday direction

By FXstreet.com | August 15, 2014 AAA

FXStreet (Córdoba) - The EUR/USD failed to sustain at highs and gave up gains as fast as it got them, dropping nearly 30 pips in a matter of minutes.

The EUR/USD had peaked at 1.3391 but came under renewed pressure as geopolitical risks dominated the headlines. The EUR/USD slid back to the 1.3360 area and it is currently trading at 1.3370, virtually unchanged on the day in thinned-holiday trade.

Despite several attempts this week, the EUR/USD seems unable to consolidate above 1.3400 and remains on track for a fifth weekly loss in a row.

EUR/USD technical outlook

According to Valeria Bednarik, chief analyst at FXStreet, the technical picture remains quite neutral in the short term.

“But for the last 3 weeks, the pair has remained limited below 1.3440 posting lower highs on every advance above 1.3400, supporting the view that approaches to that level should be seen as selling opportunities”, said the analyst. “To the downside, some intraday support stands at 1.3350, followed by this year low of 1.3332: it will be only below this latter that the pair can gain some bearish momentum, triggering stops, and extending then its decline towards 1.3295, November 2013 monthly low”.

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