FXStreet (Barcelona) - FXStreet Chief Analyst Valeria Bednarik notes that the EUR/USD has spent the last 48 hours in a 40 pips range, extending this Thursday 3 pips lower, down to 1.3518 still a meaningless move, considering it bounced back some.
“Nevertheless, the technical outlook is still heavy and risk remains to the downside mostly because on the surging carry trade between EUR negative rates, and rising ones among commodity currencies: it has been far more profitable these days trading EURAUD or EURNZD than poor EURUSD.”
“Anyway and for the most traded pair, the 4 hours chart maintains a clear negative bias, with price developing below 20 SMA, now offering dynamic resistance around 1.3560, while indicators turn back south in negative territory, after correcting oversold readings."
“Critical support comes at 1.3476, this year low, and a test of the level seems likely as long as the upside remains contained, with a break below it exposing 1.3400/30 price zone in the short term.”
“The resistance to watch is 1.3570/80 former support, and steady gains above the level may ease the bearish pressure, at least temporally, looking for and advance up to 1.3620/40 price zone.”