EUR/USD downside is limited – FXStreet

By FXstreet.com | July 10, 2014 AAA

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the dollar came back on Thursday, erasing all of its post FOMC losses against its rivals, except the yen.

Key Quotes:

“Risk aversion took over markets on worries over the financial health of a major Portuguese lender, Espirito Santo that drove down all major stock indexes both in Europe and the US”.

“Weak European Industrial data also weighed on the common currency that closed the day right below the 1.3600 figure against the greenback. Furthermore, FED’s warning yesterday about investors been too complacent fuelled some intraday profit taking in the stocks world triggering a strong demand of safe havens”.

“Technically, the EUR/USD downward potential remains limited by buying interest in the 1.3570 area, and as long as above it, range will prevail”.

“The hourly chart shows indicators heading south below their midlines, starting to get exhausted near oversold readings but far from suggesting a reversal. In the 4 hours chart the picture is also slightly bearish, with a break below mentioned support favoring a run towards 1.3530 price zone”.

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