EUR/USD consolidative but bearish bias persists

By FXstreet.com | July 16, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3523, down -0.32% on the day, having posted a daily high at 1.3575 and low at 1.3524.

The EUR/USD continues to consolidate yesterday’s catalysts for the dramatic 100-pip tumble onto the current lows. Today, we have been listening to Yellen’s three hour testimony, where essentially she feels that the economy is on track in terms of growth expectations and labour markets. We now await the beige book with there being little else on the calendar in the way of possible market moving events.

EUR/USD continues with a bearish bias

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the EUR/USD short‐term technical are bearish. “Suddenly technical studies have taken a bearish turn, with spot break below support and the MACD warning of a building downside move. We expect the recent low of 1.3503 to hold; but a break below would open up a test to 1.3477 (the February 2013 low) followed by 1.3400."

EUR/USD Levels

Spot is presently trading at 1.3524, and next resistance can be seen at 1.3536 (Weekly Classic S2), 1.3543 (Daily Classic S1), 1.3548 (Monthly Low), 1.3550 (Hourly 20 EMA) and 1.3562 (Yesterday's Low). Next support to the downside can be found at 1.3522 (Daily Low), 1.3518 (Daily Classic S2), 1.3495 (Weekly Classic S3), 1.3487 (YTD Low) and 1.3475 (Daily Classic S3).

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