FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that EUR/USD has fallen to fresh year lows of 1.3348 on Wednesday, following weak Eurozone macro data releases in teh European morning.
"Considering the ECB will have its monthly meeting tomorrow, the pair may see intraday restricted moves, but bearish trend prevails: the 4 hours chart shows price developing below its 20 SMA, currently acting as dynamic resistance around 1.3400."
"Meanwhile, indicators stand flat in oversold levels, with no signs of attempting an upward correction."
"Further declines below 1.3350 should see price extending slowly but steadily towards 1.3295, still the main bearish target as per being November 2013 monthly low."
"A reversal in price may see it testing mentioned 1.3400 area and if above, 1.3440 comes next."
"Chances of a break above this last however, seems quite unlikely for today, with more chances of sellers surging on approaches to it. "