FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the dollar edged lower against most rivals in a livelier trading journey, still limited by the typical summer drop in volume.
“But there was an exception to dollar intraday weakness, and of course it came from the EUR: the pair retested the year low falling down to 1.3335 on the back of disappointing German data early Europe, and despite a late bounce, it was not enough to push price back to positive territory”.
“Short term, the technical picture is showing price advancing at it session highs above a bearish 20 SMA, while indicators approach their midlines, still below them which means upward momentum is not enough to confirm a bullish continuation; in the same time frame 100 and 200 SMAs stand well above current price, suggesting the main interest is to the downside”.
“In the 4 hours chart technical readings maintain the negative tone, with momentum heading south below its midline and price capped by 20 SMA now around 1.3370. The large amount of shorts has turned risky to sell on break lowers, as there’s a chance there won’t be follow through afterwards, so waiting for upward corrections continue to be the most wise choice”.
“Support levels: 1.3330, 1.3295 and 1.3250”.
“Resistance levels: 1.3370, 1.3410 and 1.3450”.