FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik remarks that the EUR/USD has been holding to the 1.3400 level, rf Eurozone CPI efusing to drop further even after the release onumbers pointing to inflation slowdown.
“Nevertheless, the pair maintains a negative bias, with the 4 hours chart showing price well below a bearish 20 SMA and indicators turning south below their midlines, with RSI having corrected oversold readings.”
“Across the board, dollar maintains a strong upward potential, with high yielders being the most affected, as stocks trade in red in Europe, while US futures point for a negative open.”
“Yesterday’s low of 1.3367 is the level to take to confirm further slides, looking then for a quick move towards 1.3330/40 price zone. Once below this last, 1.3295, past November 2013 comes next.”
“The pair seems well limited to the upside by 1.3400, but some steady gains above it can see the pair up to 1.3440.”
“Further rallies however are unlikely, considering US employment figures will be released early Friday.”