FXStreet (Łódź) - As FXStreet Chief Analyst Valeria Bednarik points out, EUR/USD remains close to this year’s lows, having fallen to 1.3440 after the disappointing German IFO confidence data.
“The technical picture is still clearly bearish, with price developing below its 20 SMA and 1.3475 strong static resistance level in the 4 hours chart, and with momentum retracing from its midline and turning back south."
“RSI also supports the downside, having corrected oversold levels and hovering now around 32.”
“Risk stands to the downside despite the slomo movements, with a price acceleration below 1.3440 favoring a run towards the 1.3400 figure.”
“A weekly close below it will expose 1.3290 price zone for the upcoming days.”
“Approaches to mentioned 1.3475 level should be consider as selling opportunities, as only a steady recovery above 1.3500 will revert current negative tone in the short term.”